MultiChoice Group (MultiChoice Group) Interest Coverage

: 5.85 (As of Sep. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. MultiChoice Group's Operating Income for the six months ended in Sep. 2023 was $269 Mil. MultiChoice Group's Interest Expense for the six months ended in Sep. 2023 was $-46 Mil. MultiChoice Group's interest coverage for the quarter that ended in Sep. 2023 was 5.85. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for MultiChoice Group's Interest Coverage or its related term are showing as below:

MCHOY' s Interest Coverage Range Over the Past 10 Years
Min: 4.12 Med: 7.43 Max: 9.58
Current: 5.48

MCHOY's Interest Coverage is ranked worse than
65.47% of 611 companies
in the Media - Diversified industry
Industry Median: 11.94 vs MCHOY: 5.48

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

MultiChoice Group Interest Coverage Historical Data

The historical data trend for MultiChoice Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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MultiChoice Group Annual Data

Trend

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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5.15

7.96

9.57

8.73

6.90

MultiChoice Group Semi-Annual Data
	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Interest Coverage	Get a 7-Day Free Trial							10.46	7.10	8.94	5.06	5.85

Competitive Comparison

For the Entertainment subindustry, MultiChoice Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

MultiChoice Group Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, MultiChoice Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MultiChoice Group's Interest Coverage falls into.

MultiChoice Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

MultiChoice Group's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, MultiChoice Group's Interest Expense was $-80 Mil. Its Operating Income was $551 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,029 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	551.22	/	-79.849
	=	6.90

MultiChoice Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the six months ended in Sep. 2023, MultiChoice Group's Interest Expense was $-46 Mil. Its Operating Income was $269 Mil. And its Long-Term Debt & Capital Lease Obligation was $966 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	269.381	/	-46.083
	=	5.85

The higher the ratio, the stronger the company's Financial Strength is.

MultiChoice Group (OTCPK:MCHOY) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

MultiChoice Group Interest Coverage Related Terms

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MultiChoice Group (MultiChoice Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » MultiChoice Group Ltd (OTCPK:MCHOY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MCG:South Africa MCOIF:USA 30R:Germany

Address

144 Bram Fischer Drive, MultiChoice City, Randburg, Johannesburg, GT, ZAF, 2194

Website

https://www.multichoice.com

MultiChoice Group Ltd is an entertainment company providing video entertainment to the African Markets. It provides its content through Direct To Home (DTH), Digital Terrestrial Television (DTT) and online video entertainment services. The entertainment platforms of the company include GOtv, Showmax, DStv, and others. Its geographical segment includes South Africa; the Rest of Africa as well as the Technology segment. The company derives a majority of its revenue from South Africa.