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GTX (Garrett Motion) Interest Coverage : 4.00 (As of Dec. 2024)


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What is Garrett Motion 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. Garrett Motion's Operating Income for the three months ended in Dec. 2024 was $120 Mil. Garrett Motion's Interest Expense for the three months ended in Dec. 2024 was $-30 Mil. Garrett Motion's interest coverage for the quarter that ended in Dec. 2024 was 4.00. The higher the ratio, the stronger the company's financial strength is.

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

GTX' s Interest Coverage Range Over the Past 10 Years
Min: 2.91   Med: 17.09   Max: 107.8
Current: 2.91


GTX's Interest Coverage is ranked worse than
70.72% of 1035 companies
in the Vehicles & Parts industry
Industry Median: 8.01 vs GTX: 2.91

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


Garrett Motion Interest Coverage Historical Data

The historical data trend for Garrett Motion'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.

* Premium members only.

Garrett Motion Interest Coverage Chart

Garrett Motion Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.48 5.85 46.70 3.12 2.91

Garrett Motion Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.03 3.48 2.00 3.05 4.00

Competitive Comparison of Garrett Motion's Interest Coverage

For the Auto Parts subindustry, Garrett Motion'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.


Garrett Motion's Interest Coverage Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Garrett Motion's Interest Coverage distribution charts can be found below:

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


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Garrett Motion 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.

Garrett Motion's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Garrett Motion's Interest Expense was $-160 Mil. Its Operating Income was $465 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,506 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*465/-160
=2.91

Garrett Motion's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, Garrett Motion's Interest Expense was $-30 Mil. Its Operating Income was $120 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,506 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*120/-30
=4.00

* 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.


Garrett Motion  (NAS:GTX) 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 .


Garrett Motion Interest Coverage Related Terms

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


Garrett Motion Business Description

Traded in Other Exchanges
Address
La Piece 16, Rolle, CHE, 1180
Garrett Motion Inc designs, manufactures and sells engineered turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers (OEMs). The company is a technology leader with expertise in delivering products across gasoline, diesel, natural gas and electrified powertrains. The company also sells its technologies in the aftermarket through its distribution network. The company derives maximum of its revenue from Gas and geographically from Europe.
Executives
Centerbridge Special Credit Partners Iii-flex, L.p. 10 percent owner 375 PARK AVENUE, 12TH AVENUE, NEW YORK NY 10152
Thierry Mabru officer: SVP, Integrated Supply Chain LA PIECE 16, ROLLE V8 1180
Julia Steyn director C/O GARRETT MOTION INC., LA PIECE 16, ROLLE V8 1180
Cyrus Capital Partners, L.p. 10 percent owner 65 EAST 55 STREET, 35TH FLOOR, NEW YORK NY 10022
Sessa Capital Gp, Llc other: Member of 10% owner group 888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Pierre Barthelet officer: SVP, Marketing & Prod Mgmt C/O GARRETT MOTION INC., LA PIECE 16, ROLLE V8 1180
Baupost Group Llc/ma 10 percent owner 10 ST JAMES AVE, SUITE 1700, BOSTON MA 02116
Cscp Iii Cayman Gp Ltd. 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Baupost Group Gp, L.l.c. 10 percent owner 10 ST. JAMES AVENUE, SUITE 1700, BOSTON MA 02116
Seth A Klarman 10 percent owner 10 ST JAMES AVENUE, STE 1700, BOSTON MA 02116
Centerbridge Credit Cayman Gp, Ltd. 10 percent owner C/O CENTERBRIDGE PARTNERS, L.P., 375 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10152
Centerbridge Credit Partners Master, L.p. 10 percent owner 375 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10152
Centerbridge Credit Partners Offshore General Partner, L.p. 10 percent owner 375 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10152
Ccp Iii Cayman Gp Ltd. 10 percent owner C/O CENTERBRIDGE PARTNERS, L.P., 375 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10152
Centerbridge Special Credit Partners General Partner Iii, L.p. 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152