Esterline Technologies (Esterline Technologies) Interest Coverage : 7.23 (As of Dec. 2018)

Esterline Technologies Interest Coverage Chart

Esterline Technologies Annual Data
	Trend	Oct09	Oct10	Oct11	Oct12	Oct13	Oct14	Sep15	Sep16	Sep17	Sep18
Interest Coverage		Get a 7-Day Free Trial					7.75	5.22	5.50	5.80	6.03

Esterline Technologies Quarterly Data
	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Interest Coverage	Get a 7-Day Free Trial															3.27	4.80	6.10	9.98	7.23

Competitive Comparison of Esterline Technologies's Interest Coverage

For the Aerospace & Defense subindustry, Esterline Technologies'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.

Esterline Technologies's Interest Coverage Distribution in the Aerospace & Defense Industry

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

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

Esterline Technologies 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

Else if Interest Expense is negative and Operating Income is negative, then

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

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

Esterline Technologies's Interest Coverage for the fiscal year that ended in Sep. 2018 is calculated as

Here, for the fiscal year that ended in Sep. 2018, Esterline Technologies's Interest Expense was $-31 Mil. Its Operating Income was $186 Mil. And its Long-Term Debt & Capital Lease Obligation was $655 Mil.

Esterline Technologies's Interest Coverage for the quarter that ended in Dec. 2018 is calculated as

Here, for the three months ended in Dec. 2018, Esterline Technologies's Interest Expense was $-7 Mil. Its Operating Income was $49 Mil. And its Long-Term Debt & Capital Lease Obligation was $647 Mil.

* 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.

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

Esterline Technologies  (NYSE:ESL) 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 .

Esterline Technologies Interest Coverage Related Terms

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Esterline Technologies (Esterline Technologies) Business Description