MTNOF (MTN Group) Interest Coverage : 1.91 (As of Jun. 2024)

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What is MTN Group 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. MTN Group's Operating Income for the six months ended in Jun. 2024 was $832 Mil. MTN Group's Interest Expense for the six months ended in Jun. 2024 was $-435 Mil. MTN Group's interest coverage for the quarter that ended in Jun. 2024 was 1.91. 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. MTN Group Ltd interest coverage is 1.87, which is low.

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

MTNOF' s Interest Coverage Range Over the Past 10 Years
Min: 1.87 Med: 2.8 Max: 7.72
Current: 1.87

MTNOF's Interest Coverage is ranked worse than
75.35% of 288 companies
in the Telecommunication Services industry
Industry Median: 4.445 vs MTNOF: 1.87

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

MTN Group Interest Coverage Historical Data

The historical data trend for MTN Group'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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MTN Group Interest Coverage Chart

MTN Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.14

2.81

3.46

4.03

2.55

MTN Group Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Interest Coverage	Get a 7-Day Free Trial															4.11	3.95	3.35	1.83	1.91

Competitive Comparison of MTN Group's Interest Coverage

For the Telecom Services subindustry, MTN Group'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.

MTN Group's Interest Coverage Distribution in the Telecommunication Services Industry

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

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

MTN Group 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.

MTN Group'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, MTN Group's Interest Expense was $-1,017 Mil. Its Operating Income was $2,599 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,920 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2598.536	/	-1017.238
	=	2.55

MTN Group's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, MTN Group's Interest Expense was $-435 Mil. Its Operating Income was $832 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,633 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2024 )	/	Interest Expense (Q: Jun. 2024 )
	=	-1	*	831.782	/	-434.693
	=	1.91

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

MTN Group (OTCPK:MTNOF) 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 .

MTN Group Interest Coverage Related Terms

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

MTN Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » MTN Group Ltd (OTCPK:MTNOF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MTN:South Africa MTNOY:USA LL6:Germany

Address

Innovation Centre 216 - 14th Avenue, Fairland, Roodepoort, Gauteng, Johannesburg, ZAF, 2195

Website

https://www.mtn.com

MTN Group Ltd is a mobile telecommunications provider operating across South Africa, Nigeria, Ghana, Cameroon, Ivory Coast, Uganda, Syria, and Sudan. most of the company's revenue is earned in South Africa and Nigeria. The company also has a joint venture in Iran. From a product perspective, most of its revenue is from voice and data. Other contributors include SMS and sale of devices revenue. MTN also provides enterprise services to small/midsize enterprises and corporate clients. The company owns the mobile infrastructure and data centers. Its segments include Network services, Mobile devices, Inter- connect and roaming, Digital and fintech and others.