SBA Communications (FRA:4SB) Interest Coverage : 3.57 (As of Mar. 2024)

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What is SBA Communications 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. SBA Communications's Operating Income for the three months ended in Mar. 2024 was €344 Mil. SBA Communications's Interest Expense for the three months ended in Mar. 2024 was €-96 Mil. SBA Communications's interest coverage for the quarter that ended in Mar. 2024 was 3.57. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. SBA Communications Corp interest coverage is 2.9, which is low.

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

FRA:4SB' s Interest Coverage Range Over the Past 10 Years
Min: 1.15 Med: 1.58 Max: 2.9
Current: 2.9

FRA:4SB's Interest Coverage is ranked worse than
51.04% of 674 companies
in the REITs industry
Industry Median: 2.98 vs FRA:4SB: 2.90

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

SBA Communications Interest Coverage Historical Data

The historical data trend for SBA Communications'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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SBA Communications Interest Coverage Chart

SBA Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.61

1.76

2.11

2.49

2.56

SBA Communications Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															2.22	2.56	2.68	2.79	3.57

Competitive Comparison of SBA Communications's Interest Coverage

For the REIT - Specialty subindustry, SBA Communications'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.

SBA Communications's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, SBA Communications's Interest Coverage distribution charts can be found below:

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

SBA Communications 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.

SBA Communications'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, SBA Communications's Interest Expense was €-400 Mil. Its Operating Income was €1,022 Mil. And its Long-Term Debt & Capital Lease Obligation was €12,422 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1022.195	/	-400.033
	=	2.56

SBA Communications's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, SBA Communications's Interest Expense was €-96 Mil. Its Operating Income was €344 Mil. And its Long-Term Debt & Capital Lease Obligation was €11,368 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	344.469	/	-96.446
	=	3.57

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

SBA Communications (FRA:4SB) 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 .

SBA Communications Interest Coverage Related Terms

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

SBA Communications (FRA:4SB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » SBA Communications Corp (FRA:4SB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SBAC:USA 4SB:Germany

Address

8051 Congress Avenue, Boca Raton, FL, USA, 33487

Website

https://www.sbasite.com

SBA Communications owns and operates almost 40,000 cell towers throughout North America, South America, and Africa. It leases space on its towers to wireless service providers, who install equipment on the towers to support their wireless networks. The company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company owns more than 17,000 towers in the U.S., which accounted for about three fourths of the company's total revenue in 2022. Internationally, SBA's greatest presence is in Brazil, where it operates roughly 10,000 towers. SBA operates as a real estate investment trust, or REIT.

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