GE AerospaceGE +1.50%71 Interest Coverage is 5.88 as of Mar. 2026, which is 119% above its 10-year median of 2.69. GuruFocus rates GE with a GF Score™ of 71/100 and a GF Value™ of $246.99 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 241 Aerospace & Defense companies, GE Aerospace ranks better than 50.21% on this metric.
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. GE Aerospace's
Operating Income
for the
three
months ended in Mar. 2026 was $2,322 Mil. GE Aerospace's Interest Expense for the
three
months ended in Mar. 2026 was $-395 Mil.
GE Aerospace's interest coverage for the quarter that ended in Mar. 2026 was 5.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for GE Aerospace's Interest Coverage or its related term are showing as below:
GE'
s Interest Coverage Range Over the Past 10 Years
Min: 0.12 Med: 2.69 Max: 10.3
Current: 8.75
GE's Interest Coverage is ranked better than 50.21% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs GE: 8.75
GE Aerospace (NYSE:GE) 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 .
GE Aerospace Interest Coverage Related Terms
GE Aerospace Interest Coverage Historical Data
* Premium members only.
The historical data trend for GE Aerospace'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.
For the Aerospace & Defense subindustry, GE Aerospace'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.
GE Aerospace Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, GE Aerospace's Interest Coverage distribution charts can be found below:
* The bar in red indicates where GE Aerospace's Interest Coverage falls into.
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:
* 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.
GE Aerospace (GE) has a Interest Coverage of 5.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on GE Aerospace and its competitors. This is 119% above median its historical median of 2.69. Over the past decade, GE Aerospace's Interest Coverage has ranged from 0.12 to 10.30. According to the industry distribution chart, GE Aerospace ranks #120 out of 241 companies in the Aerospace & Defense industry, placing it in the top 49.8%.
Is GE Aerospace's Interest Coverage too high?
GE Aerospace's current Interest Coverage of 5.88 is 119% above median its 10-year median of 2.69. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 10.30. The Aerospace & Defense industry median Interest Coverage is 8.69. GE Aerospace's value of 5.88 is 32.3% below this industry median. Based on the distribution chart, GE Aerospace ranks #120 out of 241 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, GE Aerospace has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GE Aerospace's Interest Coverage compare to RTX and BA?
According to the Aerospace & Defense industry distribution chart, GE Aerospace ranks #120 out of 241 companies for Interest Coverage. This puts GE Aerospace in the upper half of its industry. The industry median Interest Coverage is 8.69. GE Aerospace's value of 5.88 is 32.3% below this benchmark. Historically, GE Aerospace's own Interest Coverage has ranged from 0.12 to 10.30 over the past decade. While the company's 10-year median is 2.69 vs. the industry median of 8.69, GE Aerospace has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GE Aerospace's current Interest Coverage of 5.88 is 32.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on GE Aerospace and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GE Aerospace's current Interest Coverage is 5.88, which is 119% above median its own 10-year median of 2.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GE Aerospace stock overvalued right now?
Based on GuruFocus' analysis, GE Aerospace (GE) is currently considered Significantly Overvalued. The stock's GF Value™ is $246.99, compared to a current price of $371.36 — trading 50.4% above its estimated fair value. The current Interest Coverage is 5.88, which is 119% above median its 10-year median of 2.69 and 32.3% below the Aerospace & Defense industry median of 8.69. GE Aerospace's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For GE Aerospace (GE), the current Interest Coverage is 5.88 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GE Aerospace (GE) Overvalued in 2026?
Based on GuruFocus' analysis, GE Aerospace stock appears to be overvalued.
The current stock price of $371.36 is trading 50.4% above its estimated GF Value™ of $246.99.
GuruFocus considers GE Aerospace to be Significantly Overvalued.
Key valuation signals for GE:
Interest Coverage: 5.88 (119% above median its 10-year median of 2.69)
GF Value™: $246.99 vs. price of $371.36 (50.4% above fair value)
Industry Position: 32.3% below the Aerospace & Defense median (#120 of 241)
No single metric tells the full story. See the GE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GE Aerospace is the global leader in designing, manufacturing, and servicing commercial aircraft turbine engines, along with partner Safran in their CFM joint venture. With its massive global installed base of nearly 80,000 commercial and military engines, GE Aerospace earns most of its profits on recurring service revenue of that equipment, which operates for decades. GE Aerospace is the remaining core business of the company formed in 1892 with historical ties to American inventor Thomas Edison; General Electric became a storied conglomerate, with peak revenue of $130 billion in 2000, until it spun off its appliance, finance, healthcare, and wind and power businesses between 2016 and 2024.
71GF Score
Get the complete analysis for GE
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
GE has been successfully added to your 
