Phinia (Phinia) Interest Coverage : 4.09 (As of Mar. 2024)

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What is Phinia 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. Phinia's Operating Income for the three months ended in Mar. 2024 was $90 Mil. Phinia's Interest Expense for the three months ended in Mar. 2024 was $-22 Mil. Phinia's interest coverage for the quarter that ended in Mar. 2024 was 4.09. The higher the ratio, the stronger the company's financial strength is.

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

PHIN' s Interest Coverage Range Over the Past 10 Years
Min: 2.12 Med: 7.09 Max: 19.85
Current: 4.87

PHIN's Interest Coverage is ranked worse than
61.35% of 1035 companies
in the Vehicles & Parts industry
Industry Median: 7.73 vs PHIN: 4.87

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

Phinia Interest Coverage Historical Data

The historical data trend for Phinia'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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Phinia Interest Coverage Chart

Phinia Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.12

8.26

19.85

5.91

Phinia Quarterly Data
	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial						13.33	24.75	3.41	3.50	4.09

Competitive Comparison of Phinia's Interest Coverage

For the Auto Parts subindustry, Phinia'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.

Phinia's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Phinia's Interest Coverage distribution charts can be found below:

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

Phinia 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.

Phinia'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, Phinia's Interest Expense was $-56 Mil. Its Operating Income was $331 Mil. And its Long-Term Debt & Capital Lease Obligation was $758 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	331	/	-56
	=	5.91

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

Here, for the three months ended in Mar. 2024, Phinia's Interest Expense was $-22 Mil. Its Operating Income was $90 Mil. And its Long-Term Debt & Capital Lease Obligation was $752 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	90	/	-22
	=	4.09

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

Phinia (NYSE:PHIN) 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 .

Phinia Interest Coverage Related Terms

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

Phinia (Phinia) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Phinia Inc (NYSE:PHIN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

3A6:Germany

Address

3000 University Drive, Auburn Hills, MI, USA, 48326

Website

Phinia Inc is a leader in the development, design and manufacture of integrated components and systems that optimize performance, increase efficiency and reduce emissions in combustion and hybrid propulsion for commercial vehicles and industrial applications and light vehicles. It is a global supplier to most major original equipment manufacturers (OEMs) and offers a wide range of original equipment service (OES) solutions and remanufactured products as well as an expanded range of products for the independent (non-OEM) aftermarket. Phinia has an extensive original equipment portfolio of advanced fuel injection systems, fuel delivery modules, canisters, starters, alternators, sensors, electronic control modules and associated software.

Executives

Neil Fryer	officer: VP and GM Global Aftermarket*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Samuel R. Chapin	director	940 WINTER STREET, C/O PERKINELMER, WALTHAM MA 02451
Brady D Ericson	officer: President and CEO*	3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Latondra Newton	director	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Daun Norman	director	C/O GARRETT MOTION INC., LA PIECE 16, ROLLE V8 1180
Beasi Alisa Di	officer: VP and CHRO*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Christopher Gustanski	officer: VP, Operational Excellence*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Matthew Logar	officer: VP and CIO*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Michael Coetzee	officer: VP and GM Fuel Syst. Americas*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Samantha Pombier	officer: VP Controller and CAO*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
John Lipinski	officer: VP and GM Fuel Syst. Europe*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Sebastian Dori	officer: VP and CPO*	3000 UNIVERSITY DRIVE, AUBURN HILLS MI 48326
Todd L Anderson	officer: VP and Chief Tech. Officer*	5605 CARNEGIE BLVD. SUITE 500, CHARLOTTE NC 28209
Roger Wood	director	3850 HAMLIN RD., AUBURN HILLS MI 48326
Robin Kendrick	director	BORGWARNER INC., 3850 HAMLIN ROAD, AUBURN HILLS MI 48326