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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. Time Warner's Operating Income for the three months ended in Mar. 2018 was $1,834 Mil. Time Warner's Interest Expense for the three months ended in Mar. 2018 was $-255 Mil. Time Warner's interest coverage for the quarter that ended in Mar. 2018 was 7.19. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Time Warner's Interest Coverage or its related term are showing as below:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
The historical data trend for Time Warner'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.
Time Warner Annual Data | |||||||||||||||||||||
Trend | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 4.98 | 4.50 | 5.03 | 5.50 | 6.58 |
Time Warner Quarterly Data | ||||||||||||||||||||
Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | |
Interest Coverage | Get a 7-Day Free Trial | 6.77 | 5.40 | 7.36 | 6.82 | 7.19 |
For the Broadcasting subindustry, Time Warner'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.
For the Media - Diversified industry and Communication Services sector, Time Warner's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Time Warner's Interest Coverage falls into.
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.
Time Warner's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as
Here, for the fiscal year that ended in Dec. 2017, Time Warner's Interest Expense was $-1,214 Mil. Its Operating Income was $7,989 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,294 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Dec. 2017 ) | / | Interest Expense (A: Dec. 2017 ) |
= | -1 | * | 7989 | / | -1214 | |
= | 6.58 |
Time Warner's Interest Coverage for the quarter that ended in Mar. 2018 is calculated as
Here, for the three months ended in Mar. 2018, Time Warner's Interest Expense was $-255 Mil. Its Operating Income was $1,834 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,331 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Mar. 2018 ) | / | Interest Expense (Q: Mar. 2018 ) |
= | -1 | * | 1834 | / | -255 | |
= | 7.19 |
* 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.
The higher the ratio, the stronger the company's Financial Strength is.
Time Warner (NYSE:TWX) 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 .
Thank you for viewing the detailed overview of Time Warner's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Fred Hassan | director | C/O CARET GROUP,, 1100 HOLLAND DR., BOCA RATON FL 33487 |
Douglas Edward Horne | officer: SVP and Controller | ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Gary L Ginsberg | officer: Executive Vice President | TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Olaf Olafsson | officer: Executive Vice President | C/O TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019 |
Paul Wachter | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Robert C Clark | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
William P Barr | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Howard M Averill | officer: EVP and CFO | CAMPBELL SOUP COMPANY, ONE CAMPBELL PLACE, CAMDEN NJ 08103 |
Paul T Cappuccio | officer: EVP and General Counsel | TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Carlos M Gutierrez | director | 5 GREENWAY PLAZA, STE 110, HOUSTON TX 77046 |
Carol A Melton | officer: Executive Vice President | 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815 |
Jessica P Einhorn | director | C/O BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055 |
Mathias Dopfner | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
Deborah C Wright | director | CARVER BANCORP, INC, 75 W. 125TH STREET, NEW YORK NY 10027 |
James L Barksdale | director | C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019 |
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