Crown Castle (Crown Castle) Interest Coverage

: 2.55 (As of Mar. 2024)

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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. Crown Castle's Operating Income for the three months ended in Mar. 2024 was $555 Mil. Crown Castle's Interest Expense for the three months ended in Mar. 2024 was $-218 Mil. Crown Castle's interest coverage for the quarter that ended in Mar. 2024 was 2.55. 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. Crown Castle Inc interest coverage is 3.03, which is low.

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

CCI' s Interest Coverage Range Over the Past 10 Years
Min: 1.83 Med: 2.28 Max: 3.62
Current: 3.03

CCI's Interest Coverage is ranked better than
50.22% of 677 companies
in the REITs industry
Industry Median: 3.01 vs CCI: 3.03

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

Crown Castle Interest Coverage Historical Data

The historical data trend for Crown Castle'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.

Crown Castle Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.40

2.78

2.97

3.62

3.03

Crown Castle Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage																3.22	3.43	2.71	2.80	2.55

Competitive Comparison

For the REIT - Specialty subindustry, Crown Castle'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.

Crown Castle Interest Coverage Distribution

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

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

Crown Castle 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.

Crown Castle'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, Crown Castle's Interest Expense was $-821 Mil. Its Operating Income was $2,488 Mil. And its Long-Term Debt & Capital Lease Obligation was $27,647 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2488	/	-821
	=	3.03

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

Here, for the three months ended in Mar. 2024, Crown Castle's Interest Expense was $-218 Mil. Its Operating Income was $555 Mil. And its Long-Term Debt & Capital Lease Obligation was $27,957 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	555	/	-218
	=	2.55

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

Crown Castle (NYSE:CCI) 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 .

Crown Castle Interest Coverage Related Terms

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

Crown Castle (Crown Castle) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Crown Castle Inc (NYSE:CCI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

8CW:Germany 8CW:Germany C1CI34:Brazil

Address

8020 Katy Freeway, Houston, TX, USA, 77024-1908

Website

https://www.crowncastle.com

Crown Castle International owns and leases roughly 40,000 cell towers in the United States. It also owns more than 85,000 route miles of fiber. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company's fiber is primarily leased by wireless service providers to set up small-cell network infrastructure and by enterprises for their internal connection needs. Crown Castle's towers and fiber are predominantly located in the largest U.S. cities. The company has a very concentrated customer base, with more than 70% of its revenue coming from the big three U.S. mobile carriers. Crown Castle operates as a real estate investment trust.

Executives

Robert Sean Collins	officer: Vice President and Controller	8020 KATY FREEWAY, HOUSTON TX 77024
Maria M Pope	director	C/O PORTLAND GENERAL ELECTRIC CO., 121 SW SALMON ST, PORTLAND OR 97204
Kevin T Kabat	director	UNUM GROUP, 1 FOUNTAIN SQUARE, CHATTANOOGA TN 37402
Kevin A Stephens	director	1220 AUGUSTA DRIVE, SUITE 600, HOUSTON TX 77057
Laura B Nichol	officer: EVP - Business Support	8020 KATY FREEWAY, HOUSTON TX 77024
Christopher Levendos	officer: EVP & COO - Fiber	8020 KATY FREEWAY, HOUSTON TX 77024
Adams Edward B Jr	officer: EVP and General Counsel	8020 KATY FREEWAY, HOUSTON TX 77024
Matthew Iii Thornton	director	3610 HACKS CROSS ROAD, MEMPHIS TN 38125
Michael Joseph Kavanagh	officer: SVP & Chief Commercial Officer	8020 KATY FREEWAY, HOUSTON TX 77024
Catherine Piche	officer: EVP & COO-Towers	8020 KATY FREEWAY, HOUSTON TX 77024
Daniel K Schlanger	officer: SVP & Chief Financial Officer	8020 KATY FREEWAY, HOUSTON TX 77024
J Landis Martin	director	TIMET CORP, 1999 BROADWAY SUITE 4300, DENVER CO 80202
Kenneth Jay Simon	officer: SVP and General Counsel	8020 KATY FREEWAY, HOUSTON TX 77024
James D Young	officer: SVP & Chief Operating Officer	510 BERING DRIVE, SUITE 500, HOUSTON TX 77057
Tammy Jones	director	MONOGRAM RESIDENTIAL TRUST,INC., 5800 GRANITE PARKWAY, SUITE 1000, PLANO TX 75024