Applied Aerospace & DefenseAADX -1.06%11 Interest Coverage is 0.55 as of Dec. 2025, which is 2% above its 10-year median of 0.54. GuruFocus rates AADX with a GF Score™ of 11/100. The stock has 3 warning signs investors should review. Among 241 Aerospace & Defense companies, Applied Aerospace & Defense ranks worse than 96.27% 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. Applied Aerospace & Defense's
Operating Income
for the
six
months ended in Dec. 2025 was $57.0 Mil. Applied Aerospace & Defense's Interest Expense for the
six
months ended in Dec. 2025 was $-103.8 Mil.
Applied Aerospace & Defense's interest coverage for the quarter that ended in Dec. 2025 was 0.55.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Applied Aerospace & Defense Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Applied Aerospace & Defense's Interest Coverage or its related term are showing as below:
AADX'
s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 0.54 Max: 0.55
Current: 0.55
AADX's Interest Coverage is ranked worse than 96.27% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.4
vs AADX: 0.55
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 .
Applied Aerospace & Defense Interest Coverage Related Terms
Applied Aerospace & Defense Interest Coverage Historical Data
* 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.
AADX vs YSS, ACHR, LUNR: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Applied Aerospace & Defense'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.
Applied Aerospace & Defense Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Applied Aerospace & Defense's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Applied Aerospace & Defense'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.
Applied Aerospace & Defense (AADX) has a Interest Coverage of 0.55 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Applied Aerospace & Defense and its competitors. This is near median its historical median of 0.54. Over the past decade, Applied Aerospace & Defense's Interest Coverage has ranged from 0.52 to 0.55. According to the industry distribution chart, Applied Aerospace & Defense ranks #232 out of 241 companies in the Aerospace & Defense industry, placing it in the top 96.3%.
Is Applied Aerospace & Defense's Interest Coverage too high?
Applied Aerospace & Defense's current Interest Coverage of 0.55 is near median its 10-year median of 0.54. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 0.55. The Aerospace & Defense industry median Interest Coverage is 8.40. Applied Aerospace & Defense's value of 0.55 is 93.5% below this industry median. Based on the distribution chart, Applied Aerospace & Defense ranks #232 out of 241 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Applied Aerospace & Defense has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Applied Aerospace & Defense's Interest Coverage compare to YSS and ACHR?
According to the Aerospace & Defense industry distribution chart, Applied Aerospace & Defense ranks #232 out of 241 companies for Interest Coverage. This places Applied Aerospace & Defense in the lower half of its industry. The industry median Interest Coverage is 8.40. Applied Aerospace & Defense's value of 0.55 is 93.5% below this benchmark. Historically, Applied Aerospace & Defense's own Interest Coverage has ranged from 0.52 to 0.55 over the past decade. While the company's 10-year median is 0.54 vs. the industry median of 8.40, Applied Aerospace & Defense 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 8.40, 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. Applied Aerospace & Defense's current Interest Coverage of 0.55 is 93.5% 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 Applied Aerospace & Defense and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Aerospace & Defense's current Interest Coverage is 0.55, which is near median its own 10-year median of 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Aerospace & Defense stock overvalued right now?
Applied Aerospace & Defense (AADX) has a current Interest Coverage of 0.55. The current Interest Coverage is 0.55, which is near median its 10-year median of 0.54 and 93.5% below the Aerospace & Defense industry median of 8.40. Applied Aerospace & Defense's overall GF Score™ is 11/100 with 3 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 Applied Aerospace & Defense (AADX), the current Interest Coverage is 0.55 as of Dec. 2025. 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.
Applied Aerospace & Defense Inc specializes in providing engineering and vertically integrated manufacturing solutions for space and defense technology companies. The company builds complex hardware for extreme operating environments, combining deep material science and IP-enabled process expertise with the ability to enable rapid prototyping, enhance new product development, and responsively scale production. The majority of the company's revenue is derived from the sales of Defense Aviation and Airborne Systems, followed by Space and Launch Systems, C5ISR and Precision Strike Systems.
11GF Score
Get the complete analysis for AADX
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
AADX has been successfully added to your 