TELUS International (Cda) (TSX:TIXT) Interest Coverage : 2.70 (As of Dec. 2023)

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What is TELUS International (Cda) Interest Coverage?

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. TELUS International (Cda)'s Operating Income for the three months ended in Dec. 2023 was C$134 Mil. TELUS International (Cda)'s Interest Expense for the three months ended in Dec. 2023 was C$-50 Mil. TELUS International (Cda)'s interest coverage for the quarter that ended in Dec. 2023 was 2.70. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for TELUS International (Cda)'s Interest Coverage or its related term are showing as below:

TSX:TIXT' s Interest Coverage Range Over the Past 10 Years
Min: 1.83 Med: 5.07 Max: 8.31
Current: 1.83

TSX:TIXT's Interest Coverage is ranked worse than
90.07% of 1602 companies
in the Software industry
Industry Median: 29.315 vs TSX:TIXT: 1.83

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

TELUS International (Cda) Interest Coverage Historical Data

The historical data trend for TELUS International (Cda)'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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TELUS International (Cda) Interest Coverage Chart

TELUS International (Cda) Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.86

6.05

5.07

8.31

1.83

TELUS International (Cda) Quarterly Data
	Dec17	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.00	1.94	1.06	1.59	2.70

Competitive Comparison of TELUS International (Cda)'s Interest Coverage

For the Software - Infrastructure subindustry, TELUS International (Cda)'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.

TELUS International (Cda)'s Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, TELUS International (Cda)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where TELUS International (Cda)'s Interest Coverage falls into.

TELUS International (Cda) 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.

TELUS International (Cda)'s Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, TELUS International (Cda)'s Interest Expense was C$-189 Mil. Its Operating Income was C$346 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,184 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	346.133	/	-189.166
	=	1.83

TELUS International (Cda)'s Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, TELUS International (Cda)'s Interest Expense was C$-50 Mil. Its Operating Income was C$134 Mil. And its Long-Term Debt & Capital Lease Obligation was C$2,184 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	134.16	/	-49.639
	=	2.70

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

TELUS International (Cda) (TSX:TIXT) 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 .

TELUS International (Cda) Interest Coverage Related Terms

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TELUS International (Cda) (TSX:TIXT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » TELUS International (Cda) Inc (TSX:TIXT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TIXT:USA 5Z9:Germany

Address

510 West Georgia Street, Floor 7, Vancouver, BC, CAN, V6B 0M3

Website

https://www.telusinternational.com

TELUS International (Cda) Inc is a digital customer experience innovator that designs, builds, and delivers next-generation solutions. Its clients include companies across several verticals, including Tech and Games, eCommerce and FinTech, Banking, Financial Services and Insurance, Communications and Media, and Travel and Hospitality. The solutions offered by the company include Digital Experience, Customer Experience, Advisory Services, and Back Office and Automation among other services. Geographically, it derives a majority of its revenue from the European region.