HAGHY (Hensoldt AG) Interest Coverage : 1.10 (As of Sep. 2024)

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What is Hensoldt AG 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. Hensoldt AG's Operating Income for the three months ended in Sep. 2024 was $36 Mil. Hensoldt AG's Interest Expense for the three months ended in Sep. 2024 was $-32 Mil. Hensoldt AG's interest coverage for the quarter that ended in Sep. 2024 was 1.10. The higher the ratio, the stronger the company's financial strength is.

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

HAGHY' s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 1.91 Max: 3.64
Current: 1.37

HAGHY's Interest Coverage is ranked worse than
87.61% of 218 companies
in the Aerospace & Defense industry
Industry Median: 7.665 vs HAGHY: 1.37

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

Hensoldt AG Interest Coverage Historical Data

The historical data trend for Hensoldt AG'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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Hensoldt AG Interest Coverage Chart

Hensoldt AG Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.75

0.52

2.79

3.64

1.91

Hensoldt AG Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															2.24	3.24	-	0.58	1.10

Competitive Comparison of Hensoldt AG's Interest Coverage

For the Aerospace & Defense subindustry, Hensoldt AG'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.

Hensoldt AG's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Hensoldt AG's Interest Coverage distribution charts can be found below:

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

Hensoldt AG 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.

Hensoldt AG'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, Hensoldt AG's Interest Expense was $-89 Mil. Its Operating Income was $171 Mil. And its Long-Term Debt & Capital Lease Obligation was $885 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	171.21	/	-89.422
	=	1.91

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

Here, for the three months ended in Sep. 2024, Hensoldt AG's Interest Expense was $-32 Mil. Its Operating Income was $36 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,482 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	35.516	/	-32.186
	=	1.10

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

Hensoldt AG (OTCPK:HAGHY) 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 .

Hensoldt AG Interest Coverage Related Terms

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

Hensoldt AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Hensoldt AG (OTCPK:HAGHY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HNSDF:USA 1HENS:Italy HAGd:UK 0A5S:UK HAG:Germany

Address

Willy-Messerschmitt-Strasse 3, Taufkirchen, BY, DEU, 82024

Website

https://www.hensoldt.net

Hensoldt AG is engaged in the business of providing defense and security electronics. Its product categories are Radar, IFF and Comms, Optronics, Spectrum Dominance, Avionics, and Integrated Solutions. The company operates in two segments: Sensors and Optronics, of which the majority of its revenue comes from the sensor segment. Its sensor segment provides system solutions and comprises three divisions Radar, Identification Friend or Foe (IFF) and Data Communications (COMMS), Spectrum Dominance and Airborne Solutions, and Customer Services. Its geographical segments are Europe, the Middle East, Asia-Pacific, North America, Africa, LATAM, and other regions.