Innovative Solutions and Support (Innovative Solutions and Support) Interest Coverage

: 4.49 (As of Dec. 2023)

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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. Innovative Solutions and Support's Operating Income for the three months ended in Dec. 2023 was $1.62 Mil. Innovative Solutions and Support's Interest Expense for the three months ended in Dec. 2023 was $-0.36 Mil. Innovative Solutions and Support's interest coverage for the quarter that ended in Dec. 2023 was 4.49. The higher the ratio, the stronger the company's financial strength is.

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

ISSC' s Interest Coverage Range Over the Past 10 Years
Min: 10.87 Med: No Debt Max: No Debt
Current: 10.87

ISSC's Interest Coverage is ranked better than
64.35% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs ISSC: 10.87

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

Innovative Solutions and Support Interest Coverage Historical Data

The historical data trend for Innovative Solutions and Support'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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Innovative Solutions and Support Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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No Debt

N/A

18.73

Innovative Solutions and Support Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															N/A	N/A	N/A	9.30	4.49

Competitive Comparison

For the Aerospace & Defense subindustry, Innovative Solutions and Support'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.

Innovative Solutions and Support Interest Coverage Distribution

For the Aerospace & Defense industry and Industrials sector, Innovative Solutions and Support's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Innovative Solutions and Support's Interest Coverage falls into.

Innovative Solutions and Support 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.

Innovative Solutions and Support's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Innovative Solutions and Support's Interest Expense was $-0.39 Mil. Its Operating Income was $7.36 Mil. And its Long-Term Debt & Capital Lease Obligation was $17.50 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	7.359	/	-0.393
	=	18.73

Innovative Solutions and Support's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Innovative Solutions and Support's Interest Expense was $-0.36 Mil. Its Operating Income was $1.62 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1.615	/	-0.36
	=	4.49

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

Innovative Solutions and Support (NAS:ISSC) 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 .

Innovative Solutions and Support Interest Coverage Related Terms

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

Innovative Solutions and Support (Innovative Solutions and Support) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Innovative Solutions and Support Inc (NAS:ISSC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

720 Pennsylvania Drive, Exton, PA, USA, 19341

Website

https://www.innovative-ss.com

Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Advanced Global Positioning System receivers that enable reduced carbon footprint navigation, and an Autothrottle, which allows a pilot to automatically control the power setting of the engine and is designed to reduce pilot workload and enhance safety. It sells its products to both the OEM and the retrofit markets.

Executives

Glen R Bressner	director	720 PENNSYLAVANIA DR, EXTON PA 19341
Estate Of Geoffrey S. M. Hedrick	10 percent owner	C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Winston J Churchill	director	C/O SCP PARTNERS, SUITE 300, 1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Christopher Harborne	10 percent owner	23F M THAI TOWER, ALL SEASONS PLACE, 87 WIRELESS ROAD, BANGKOK W1 10300
Michael Linacre	officer: Chief Financial Officer	720 PENNSYLVANIA DRIVE, EXTON PA 19341
Parizad Olver	director	C/O SEMPER PARATUS ACQUISITION CORP., 767 THIRD AVENUE, 38TH FLOOR, NEW YORK NY 10017
Mittelstaedt Robert E Jr	director
Stephen L Belland	director	5717 COMPASS COURT, CAPE CORAL FL 33914
Roger Anthony Carolin	director	1200 LIBERTY RIDGE DRIVE, WAYNE PA 19087
Relland Winand	officer: Chief Financial Officer	C/O INNOVATIVE SOLUTIONS & SUPPORT INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Shahram Askarpour	officer: President	C/O INNOVATIVE SOLUTIONS & SUPPORT, INC., 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Ronald Albrecht	officer: Chief Financial Officer	C/O INNOVATIVE SOLUTIONS AND SUPPORT INC, 720 PENNSYLVANIA DRIVE, EXTON PA 19341
Robert Mionis	director
John C Long	officer: Chief Financial Officer	2400 BERNVILLE ROAD, READING PA 19612
Raymond J Wilson	director	720 PENNSYLVANIA DRIVE, EXTON PA 19341