Cincinnati Bell (Cincinnati Bell) Interest Coverage

: 0.96 (As of Jun. 2021)

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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. Cincinnati Bell's Operating Income for the three months ended in Jun. 2021 was $32 Mil. Cincinnati Bell's Interest Expense for the three months ended in Jun. 2021 was $-34 Mil. Cincinnati Bell's interest coverage for the quarter that ended in Jun. 2021 was 0.96. The higher the ratio, the stronger the company's financial strength is.

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

CBB's Interest Coverage is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 4.53
* 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.

Cincinnati Bell Interest Coverage Historical Data

The historical data trend for Cincinnati Bell'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.

Cincinnati Bell Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Interest Coverage

1.46

1.25

0.87

0.66

0.88

Cincinnati Bell Quarterly Data
	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21
Interest Coverage																0.91	0.83	1.06	1.08	0.96

Competitive Comparison

For the Telecom Services subindustry, Cincinnati Bell'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.

Cincinnati Bell Interest Coverage Distribution

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

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

Cincinnati Bell 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.

Cincinnati Bell's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Cincinnati Bell's Interest Expense was $-134 Mil. Its Operating Income was $118 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,984 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2020 )	/	Interest Expense (A: Dec. 2020 )
	=	-1	*	117.9	/	-134.2
	=	0.88

Cincinnati Bell's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Cincinnati Bell's Interest Expense was $-34 Mil. Its Operating Income was $32 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,924 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2021 )	/	Interest Expense (Q: Jun. 2021 )
	=	-1	*	32.2	/	-33.5
	=	0.96

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

Cincinnati Bell (NYSE:CBB) 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 .

Cincinnati Bell Interest Coverage Related Terms

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

Cincinnati Bell (Cincinnati Bell) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Cincinnati Bell Inc (NYSE:CBB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

221 East Fourth Street, Cincinnati, OH, USA, 45202

Website

https://www.cincinnatibell.com

Cincinnati Bell Inc provides wireline and wireless telecommunication services in Cincinnati, Ohio, and surrounding markets in Kentucky and Indiana. It operates business through two segments. Entertainment and Communications segment provides high speed data, video, and voice solutions to consumers and businesses over an expanding fiber network and a legacy copper network. IT Services and Hardware segment provides sale and service of efficient, end-to-end communications and IT systems and solutions across the U.S., Canada, and Europe. The company generates a substantial portion of its revenues by delivering voice and data services over access lines.

Executives

Jakki L. Haussler	director	221 EAST FOURTH STREET, CINCINNATI OH 45202
Martin Yudkovitz	director	P O BOX 2301, CINCINNATI OH 45201
Craig F Maier	director	P O BOX 2301, CINCINNATI OH 45202
Meredith J Ching	director	822 BISHOP ST., HONOLULU HI 96813
Dods Walter A Jr	director	822 BISHOP ST., HONOLULU HI 96813
Theodore H. Torbeck	director, Director	221 EAST FOURTH STREET, CINCINNATI OH 45202
Lynn A Wentworth	director	CINCINNATI BELL INC, P O BOX 2301, CINCINNATI OH 45201
Russel Paul Mayer	director	221 EAST FOURTH STREET, CINCINNATI OH 45202
Leigh R. Fox	officer: Chief Executive Officer	221 EAST FOURTH STREET, CINCINNATI OH 45202
Joshua T. Duckworth	officer: Vice President & Treasurer	P O BOX 2301, CINCINNATI OH 45201
Christopher J Wilson	officer: VP, General Counsel	P O BOX 2301, CINCINNATI OH 45201
Thomas E Simpson	officer: Chief Operating Officer	221 EAST FOURTH STREET, CINCINNATI OH 45202
Andrew R. Kaiser	officer: Chief Financial Officer	221 EAST FOURTH STREET, CINCINNATI OH 45202
Christi H Cornette	officer: Chief Culture Officer	221 EAST FOURTH STREET, CINCINNATI OH 45202
John W. Eck	director	221 EAST FOURTH STREET, CINCINNATI OH 45202