Telesat (Telesat) Interest Coverage : 1.06 (As of Dec. 2023)

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What is Telesat 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. Telesat's Operating Income for the three months ended in Dec. 2023 was $52.2 Mil. Telesat's Interest Expense for the three months ended in Dec. 2023 was $-49.0 Mil. Telesat's interest coverage for the quarter that ended in Dec. 2023 was 1.06. The higher the ratio, the stronger the company's financial strength is.

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

TSAT' s Interest Coverage Range Over the Past 10 Years
Min: 1.34 Med: 1.99 Max: 2.39
Current: 2.39

TSAT's Interest Coverage is ranked worse than
85.06% of 1600 companies
in the Hardware industry
Industry Median: 12.455 vs TSAT: 2.39

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

Telesat Interest Coverage Historical Data

The historical data trend for Telesat'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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Telesat Interest Coverage Chart

Telesat Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.77

1.99

2.18

1.34

2.39

Telesat Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial									1.13	1.16	6.17	1.11	1.06

Competitive Comparison of Telesat's Interest Coverage

For the Communication Equipment subindustry, Telesat'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.

Telesat's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Telesat's Interest Coverage distribution charts can be found below:

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

Telesat 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.

Telesat'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, Telesat's Interest Expense was $-202.0 Mil. Its Operating Income was $483.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,406.2 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	483.398	/	-201.966
	=	2.39

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

Here, for the three months ended in Dec. 2023, Telesat's Interest Expense was $-49.0 Mil. Its Operating Income was $52.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,406.2 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	52.191	/	-49.035
	=	1.06

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

Telesat (NAS:TSAT) 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 .

Telesat Interest Coverage Related Terms

Thank you for viewing the detailed overview of Telesat's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Telesat (Telesat) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telesat Corp (NAS:TSAT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ZE2:Germany TSAT:Canada

Address

160 Elgin Street, Ottawa, ON, CAN, K2P 2P7

Website

https://www.telesat.com

Telesat Corp is a global satellite operator, providing its customers with mission-critical communications services. The company's segment includes Broadcast; Enterprise and Consulting and other. The Broadcast segment includes Direct-to-home television, video distribution and contribution, and occasional use services. The enterprise segment includes telecommunication carriers and integrators, government, consumer broadband, resource, maritime and aeronautical, retail and satellite operator services. Consulting and other segments include Consulting services related to space and earth segments, government studies, satellite control services, and research and development. Geographically, it derives a majority of its revenue from Canada.

Executives

Mario J Gabelli	10 percent owner	191 MASON STREET, GREENWICH CT 06830
Gamco Investors, Inc. Et Al	10 percent owner	191 MASON STREET, GREENWICH CT 06830
Ggcp, Inc.	10 percent owner	189 MASON STREET, GREENWICH CT 06830
Associated Capital Group, Inc.	10 percent owner	191 MASON STREET, GREENWICH CT 06830