Virgin Media (LSE:VMED) Interest Coverage : 1.67 (As of Mar. 2013)

View and export this data going back to . Start your Free Trial

What is Virgin Media 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. Virgin Media's Operating Income for the three months ended in Mar. 2013 was £150 Mil. Virgin Media's Interest Expense for the three months ended in Mar. 2013 was £-90 Mil. Virgin Media's interest coverage for the quarter that ended in Mar. 2013 was 1.67. The higher the ratio, the stronger the company's financial strength is.

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

LSE:VMED' s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 1.88
Current: 1.88

LSE:VMED's Interest Coverage is not ranked
in the Media - Diversified industry.
Industry Median: 11.615 vs LSE:VMED: 1.88

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

Virgin Media Interest Coverage Historical Data

The historical data trend for Virgin Media'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.

Virgin Media Interest Coverage Chart

Virgin Media Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Interest Coverage

Get a 7-Day Free Trial

0.31

0.67

1.23

1.75

Virgin Media Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Interest Coverage	Get a 7-Day Free Trial															1.24	1.82	1.80	2.22	1.67

Competitive Comparison of Virgin Media's Interest Coverage

For the Broadcasting subindustry, Virgin Media'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.

Virgin Media's Interest Coverage Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Virgin Media's Interest Coverage distribution charts can be found below:

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

Virgin Media 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.

Virgin Media's Interest Coverage for the fiscal year that ended in Dec. 2012 is calculated as

Here, for the fiscal year that ended in Dec. 2012, Virgin Media's Interest Expense was £-399 Mil. Its Operating Income was £699 Mil. And its Long-Term Debt & Capital Lease Obligation was £5,852 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2012 )	/	Interest Expense (A: Dec. 2012 )
	=	-1	*	699.1	/	-398.5
	=	1.75

Virgin Media's Interest Coverage for the quarter that ended in Mar. 2013 is calculated as

Here, for the three months ended in Mar. 2013, Virgin Media's Interest Expense was £-90 Mil. Its Operating Income was £150 Mil. And its Long-Term Debt & Capital Lease Obligation was £6,029 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2013 )	/	Interest Expense (Q: Mar. 2013 )
	=	-1	*	149.8	/	-89.7
	=	1.67

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

Virgin Media (LSE:VMED) 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 .

Virgin Media Interest Coverage Related Terms

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

Virgin Media (LSE:VMED) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Virgin Media Inc (LSE:VMED) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

Virgin Media Inc is engaged in the entertainment and communications business, being a quad-play provider of broadband internet, television, mobile telephony and fixed line telephony services that offer a variety of entertainment and communications services to residential and commercial customers throughout the U.K. The group is a provider of residential broadband internet, pay television and fixed line telephony services by number of customers. In addition, it provides a complete portfolio of voice, data and internet solutions to businesses, public sector organizations and service providers in the U.K. through Virgin Media Business. Its two reporting segments are Consumer and Business. Consumer segment includes the distribution of television programming over the cable network and the provision of broadband and fixed line telephone services to residential consumers, both on and off the cable network. The Consumer segment faces competition from BT, British Sky Broadcasting Group PLC, or BSkyB, TalkTalk Telecom Group PLC, or TalkTalk, Vodafone, EE and O2. Business segment includes the voice and data telecommunication and internet solutions services that provide through its cable network and third party networks to businesses, public sector organizations and service providers. The Business segment is managed through Virgin Media Business offers a broad portfolio of voice, data and internet solutions to commercial and public sector organizations in the U.K., ranging from analog telephony to managed data networks and applications. Virgin Media Business competes primarily with traditional network operators such as BT and C&W. It also competes with regional providers, such as COLTTelecom Group PLC.

Virgin Media (LSE:VMED) Headlines

No Headlines