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Koninklijke KPN NV (XAMS:KPN) Interest Coverage : 4.90 (As of Dec. 2023)


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What is Koninklijke KPN NV 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. Koninklijke KPN NV's Operating Income for the six months ended in Dec. 2023 was €686 Mil. Koninklijke KPN NV's Interest Expense for the six months ended in Dec. 2023 was €-140 Mil. Koninklijke KPN NV's interest coverage for the quarter that ended in Dec. 2023 was 4.90. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Koninklijke KPN NV's Interest Coverage or its related term are showing as below:

XAMS:KPN' s Interest Coverage Range Over the Past 10 Years
Min: 1.55   Med: 2.63   Max: 5.59
Current: 4.98


XAMS:KPN's Interest Coverage is ranked better than
53.45% of 290 companies
in the Telecommunication Services industry
Industry Median: 4.56 vs XAMS:KPN: 4.98

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


Koninklijke KPN NV Interest Coverage Historical Data

The historical data trend for Koninklijke KPN NV'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.

* Premium members only.

Koninklijke KPN NV Interest Coverage Chart

Koninklijke KPN NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.87 3.80 4.58 5.59 4.98

Koninklijke KPN NV Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.73 5.76 5.45 5.07 4.90

Competitive Comparison of Koninklijke KPN NV's Interest Coverage

For the Telecom Services subindustry, Koninklijke KPN NV'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.


Koninklijke KPN NV's Interest Coverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Koninklijke KPN NV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Koninklijke KPN NV's Interest Coverage falls into.



Koninklijke KPN NV 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.

Koninklijke KPN NV'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, Koninklijke KPN NV's Interest Expense was €-266 Mil. Its Operating Income was €1,325 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,130 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1325/-266
=4.98

Koninklijke KPN NV's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Koninklijke KPN NV's Interest Expense was €-140 Mil. Its Operating Income was €686 Mil. And its Long-Term Debt & Capital Lease Obligation was €6,130 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*686/-140
=4.90

* 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.


Koninklijke KPN NV  (XAMS:KPN) 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 .


Koninklijke KPN NV Interest Coverage Related Terms

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Koninklijke KPN NV (XAMS:KPN) Business Description

Address
Wilhelminakade 123, Rotterdam, NLD, 3072 AP
KPN is the incumbent telecom operator in the Netherlands. It has close to 40% share of the broadband market and 20% of the postpaid mobile market, mainly competing with VodafoneZiggo (mobile and fixed) and T-Mobile Netherlands (mainly mobile). KPN is rolling out fiber to the home in the Netherlands and expects to have most of the country covered by 2025.

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