Altice USA (Altice USA) Interest Coverage

: 1.13 (As of Dec. 2023)

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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. Altice USA's Operating Income for the three months ended in Dec. 2023 was $478 Mil. Altice USA's Interest Expense for the three months ended in Dec. 2023 was $-423 Mil. Altice USA's interest coverage for the quarter that ended in Dec. 2023 was 1.13. 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. Altice USA Inc interest coverage is 1.17, which is low.

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

ATUS' s Interest Coverage Range Over the Past 10 Years
Min: 0.48 Med: 1.2 Max: 2.01
Current: 1.17

ATUS's Interest Coverage is ranked worse than
85.76% of 288 companies
in the Telecommunication Services industry
Industry Median: 4.61 vs ATUS: 1.17

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

Altice USA Interest Coverage Historical Data

The historical data trend for Altice USA'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.

Altice USA Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.23

1.63

2.01

1.45

1.17

Altice USA Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.12	1.17	1.20	1.18	1.13

Competitive Comparison

For the Telecom Services subindustry, Altice USA'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.

Altice USA Interest Coverage Distribution

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

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

Altice USA 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.

Altice USA'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, Altice USA's Interest Expense was $-1,639 Mil. Its Operating Income was $1,917 Mil. And its Long-Term Debt & Capital Lease Obligation was $24,980 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1916.667	/	-1639.12
	=	1.17

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

Here, for the three months ended in Dec. 2023, Altice USA's Interest Expense was $-423 Mil. Its Operating Income was $478 Mil. And its Long-Term Debt & Capital Lease Obligation was $24,980 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	477.686	/	-422.917
	=	1.13

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

Altice USA (NYSE:ATUS) 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 .

Altice USA Interest Coverage Related Terms

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

Altice USA (Altice USA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Altice USA Inc (NYSE:ATUS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

15PA:Germany 15PA:Germany

Address

1 Court Square West, Long Island City, New York, NY, USA, 11101

Website

https://www.alticeusa.com

Altice Europe acquired privately held U.S. cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provide television, internet access, and phone services to roughly 3.5 million U.S. homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provides comparable services to about 5.5 million homes and business in the New York City metro area. Both regions operate under the Optimum brand name. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local news in New York, i24News, a news operation focused on the Middle East, and Cheddar, a news upstart.

Executives

Alexandre Fonseca	director	1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Marc Sirota	officer: Chief Financial Officer	1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Patrick Drahi	director, 10 percent owner	WIESTISTRASSE 14, ZERMATT V8 3920
Next Alt S.a.r.l.	director, 10 percent owner	5, RUE EUGENE RUPPERT, GRAND DUCHY OF LUXEMBOURG N4 L-2453
Dennis Mathew	officer: Chief Executive Officer	1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Maria Bruzzese	officer: Chief Accounting Officer	1 COURT SQUARE WEST, LONG ISLAND CITY NY 11101
Charles Stewart	officer: Co-President & CFO	1111 STEWART AVENUE, BETHPAGE NY 11714
Mark Mullen	director	1111 STEWART AVENUE, BETHPAGE NY 11714
Susan C Schnabel	director	C/O CREDIT SUISSE FIRST BOSTON, 11 MADISON AVE, NEW YORK NY 10010
Gerrit Jan Bakker	director	15 RUE PIERRE FATIO 6TH FLOOR, GENEVA V8 1204
Raymond Svider	director	650 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10022
Michael Olsen	officer: Acting Gen Counsel & Secretary	1 COURT SQUARE W, LONG ISLAND CITY NY 11101
Michael Grau	officer: Chief Financial Officer	1 COURT SQUARE W, LONG ISLAND CITY NY 11101
Soroban Opportunities Master Fund Lp	10 percent owner	WALKERS CORPORATE LIMITED, CAYMAN CORPORATE CENTRE, 27 HOSPITAL RD, GEORGE TOWN E9 KY1-9008
Soroban Capital Gp Llc	10 percent owner	55 WEST 46TH STREET, 32ND FLOOR, NEW YORK NY 10036