Sprint (Sprint) Interest Coverage : 0.11 (As of Dec. 2019)

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What is Sprint 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. Sprint's Operating Income for the three months ended in Dec. 2019 was $66 Mil. Sprint's Interest Expense for the three months ended in Dec. 2019 was $-589 Mil. Sprint's interest coverage for the quarter that ended in Dec. 2019 was 0.11. The higher the ratio, the stronger the company's financial strength is.

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

S's Interest Coverage is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 4.61
* Ranked among companies with meaningful Interest Coverage only.

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

Sprint Interest Coverage Historical Data

The historical data trend for Sprint'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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Sprint Interest Coverage Chart

Sprint Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Mar15

Mar16

Mar17

Mar18

Mar19

Interest Coverage

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0.26

0.33

0.71

1.15

0.94

Sprint Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Interest Coverage	Get a 7-Day Free Trial															0.72	0.52	0.74	0.40	0.11

Competitive Comparison of Sprint's Interest Coverage

For the Telecom Services subindustry, Sprint'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.

Sprint's Interest Coverage Distribution in the Telecommunication Services Industry

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

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

Sprint 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.

Sprint's Interest Coverage for the fiscal year that ended in Mar. 2019 is calculated as

Here, for the fiscal year that ended in Mar. 2019, Sprint's Interest Expense was $-2,563 Mil. Its Operating Income was $2,398 Mil. And its Long-Term Debt & Capital Lease Obligation was $35,366 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2019 )	/	Interest Expense (A: Mar. 2019 )
	=	-1	*	2398	/	-2563
	=	0.94

Sprint's Interest Coverage for the quarter that ended in Dec. 2019 is calculated as

Here, for the three months ended in Dec. 2019, Sprint's Interest Expense was $-589 Mil. Its Operating Income was $66 Mil. And its Long-Term Debt & Capital Lease Obligation was $38,930 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2019 )	/	Interest Expense (Q: Dec. 2019 )
	=	-1	*	66	/	-589
	=	0.11

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

Sprint (NYSE:S) 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 .

Sprint Interest Coverage Related Terms

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

Sprint (Sprint) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Sprint Corp (NYSE:S) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

6200 Sprint Parkway, Overland Park, KS, USA, 66251

Website

https://www.sprint.com

A decade of operational problems has considerably diminished Sprint's position in the wireless industry. It is now the fourth- largest carrier in the United States, serving 26 million postpaid and 9 million prepaid phone customers directly and 13 million via wholesale channels. Over the past five years, the firm's share of the postpaid phone market has declined about 1 percentage point to 12%, leaving it about three fourths the size of T-Mobile U.S., the next smallest carrier. About 4% of sales come from the wireline unit, which provides phone and data services to the wireless unit and external customers. Japanese firm Softbank took a 78% stake in Sprint through the purchase of existing Sprint shares and a $5 billion equity infusion in 2013; it has since increased its stake to 85%.