ESYJY (easyJet) Interest Coverage : 13.46 (As of Sep. 2024)

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What is easyJet Interest Coverage?

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. easyJet's Operating Income for the six months ended in Sep. 2024 was $1,229 Mil. easyJet's Interest Expense for the six months ended in Sep. 2024 was $-91 Mil. easyJet's interest coverage for the quarter that ended in Sep. 2024 was 13.46. The higher the ratio, the stronger the company's financial strength is.

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

ESYJY' s Interest Coverage Range Over the Past 10 Years
Min: 2.52 Med: 13.93 Max: 62.55
Current: 4.46

ESYJY's Interest Coverage is ranked worse than
59.5% of 837 companies
in the Transportation industry
Industry Median: 5.9 vs ESYJY: 4.46

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

easyJet Interest Coverage Historical Data

The historical data trend for easyJet'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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easyJet Interest Coverage Chart

easyJet Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Interest Coverage

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2.52

4.46

easyJet Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Interest Coverage	Get a 7-Day Free Trial															5.97	-	10.43	-	13.46

Competitive Comparison of easyJet's Interest Coverage

For the Airlines subindustry, easyJet'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.

easyJet's Interest Coverage Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, easyJet's Interest Coverage distribution charts can be found below:

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

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easyJet 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.

easyJet's Interest Coverage for the fiscal year that ended in Sep. 2024 is calculated as

Here, for the fiscal year that ended in Sep. 2024, easyJet's Interest Expense was $-175 Mil. Its Operating Income was $779 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,488 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2024 )	/	Interest Expense (A: Sep. 2024 )
	=	-1	*	779.101	/	-174.603
	=	4.46

easyJet's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the six months ended in Sep. 2024, easyJet's Interest Expense was $-91 Mil. Its Operating Income was $1,229 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,488 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	1228.836	/	-91.27
	=	13.46

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

easyJet (OTCPK:ESYJY) 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 .

easyJet Interest Coverage Related Terms

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

easyJet Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » easyJet PLC (OTCPK:ESYJY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

EJTTF:USA EZJl:UK EZJ:UK EJT1:Germany

Address

Hangar 89, London Luton Airport, Luton, Bedfordshire, GBR, LU2 9PF

Website

https://www.easyjet.com

EasyJet PLC is a European low-cost airline, headquartered in Luton, United Kingdom. Established in 1995, easyJet operates on a point-to-point model, providing affordable and efficient travel options across Europe. The airline serves more than 150 airports in over 30 countries, with a network spanning key cities and popular holiday destinations. EasyJet is known for its extensive route network, with primary bases at London Gatwick, Milan Malpensa, and Geneva, among others. easyJet has two operating segments, being its Airline business, which operates easyJet's route network, and the Holidays business, which sells package holidays.