Servotronics (Servotronics) Interest Coverage

: 5.27 (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. Servotronics's Operating Income for the three months ended in Dec. 2023 was $0.51 Mil. Servotronics's Interest Expense for the three months ended in Dec. 2023 was $-0.10 Mil. Servotronics's interest coverage for the quarter that ended in Dec. 2023 was 5.27. The higher the ratio, the stronger the company's financial strength is.

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

SVT's Interest Coverage is not ranked ^*
in the Industrial Products industry.
Industry Median: 13.755
* Ranked among companies with meaningful Interest Coverage only.

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

Servotronics Interest Coverage Historical Data

The historical data trend for Servotronics'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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Servotronics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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25.94

1.34

11.70

Servotronics 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															-	-	-	2.86	5.27

Competitive Comparison

For the Electrical Equipment & Parts subindustry, Servotronics'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.

Servotronics Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Servotronics's Interest Coverage distribution charts can be found below:

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

Servotronics 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.

Servotronics'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, Servotronics's Interest Expense was $-0.34 Mil. Its Operating Income was $-2.11 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.00 Mil.

Servotronics did not have earnings to cover the interest expense.

Servotronics's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Servotronics's Interest Expense was $-0.10 Mil. Its Operating Income was $0.51 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	*	0.511	/	-0.097
	=	5.27

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

Servotronics (AMEX:SVT) 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 .

Servotronics Interest Coverage Related Terms

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Servotronics (Servotronics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Servotronics Inc (AMEX:SVT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1110 Maple Street, Post Office Box 300, Elma, NY, USA, 14059

Website

https://www.servotronics.com

Servotronics Inc is a U.S based company that designs, manufactures, and markets technology products consisting of control components and consumer products, consisting of knives and various types of cutlery and other edged products. The company operates in the segments of Technology Group, which is the key revenue-generating segment, and Consumer Products Group. Technology Group operations involve the design, manufacture, and marketing of servo-control components, which include torque motors, control valves, and actuators, among others for government, commercial and industrial applications. Consumer Products Group operations involve the designing, manufacturing, and marketing of a range of cutlery products for use by consumers and government agencies.

Executives

Robert Fraass	officer: Chief Financial Officer	1110 MAPLE STREET, PO BOX 300, ELMA NY 14059
Kenneth D Trbovich	officer: President	1110 MAPLE STREET, ELMA NY 14059
Estate Of Nicholas D. Trbovich, Sr.	10 percent owner	960 PORTERVILLE ROAD, EAST AURORA NY 14052
Brent D Baird	10 percent owner	1350 ONE M&T PLAZA, BUFFALO NY 14203-2396
Evan H Wax	director	44 CHERRY LANE, MADISON CT 06443
Founders Software, Inc.	10 percent owner	401 EAST AMHERST ST, BUFFALO NY 14215
Snyder Paul L. Iii	10 percent owner	401 EAST AMHERST ST, BUFFALO NY 14215
Beaver Hollow Wellness, Llc	10 percent owner	401 EAST AMHERST ST, BUFFALO NY 14215
Edward C Cosgrove	director	525 DELAWARE AVENUE, BUFFALO NY 14202
Lucion P Gygax	director	1110 MAPLE STREET, ELMA NY 14059
Christopher M Marks	director	360 DELAWARE AVENUE, SUITE 230, BUFFALO NY 14202
Karen L Howard	director	C/O SERVOTRONICS, INC., 1110 MAPLE STREET, ELMA NY 14059
Farrell William F Jr.	director, officer: Chief Executive Officer	1110 MAPLE STREET, PO BOX 300, ELMA NY 14059
Jason T Bear	director	5301 N. COMMERCE AVE., SUITE C, MOORPARK CA 93021
Lisa F Bencel	officer: Chief Financial Officer	1110 MAPLE STREET, ELMA NY 14059