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GE Aerospace (LIM:GE) Interest Coverage

: 3.71 (As of Mar. 2024)
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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. 2024 was $1,030 Mil. GE Aerospace's Interest Expense for the three months ended in Mar. 2024 was $-278 Mil. GE Aerospace's interest coverage for the quarter that ended in Mar. 2024 was 3.71. 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:

LIM:GE' s Interest Coverage Range Over the Past 10 Years
Min: 0.12   Med: 1.76   Max: 5.66
Current: 3.19


LIM:GE's Interest Coverage is ranked worse than
73.61% of 216 companies
in the Aerospace & Defense industry
Industry Median: 7.04 vs LIM:GE: 3.19

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


GE Aerospace Interest Coverage Historical Data

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.

* Premium members only.

GE Aerospace Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.76 0.12 0.59 0.19 3.20

GE Aerospace Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.86 2.95 3.81 4.04 3.71

Competitive Comparison

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 Distribution

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.



GE Aerospace 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.

GE Aerospace'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, GE Aerospace's Interest Expense was $-1,118 Mil. Its Operating Income was $3,574 Mil. And its Long-Term Debt & Capital Lease Obligation was $21,684 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*3574/-1118
=3.20

GE Aerospace's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, GE Aerospace's Interest Expense was $-278 Mil. Its Operating Income was $1,030 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,493 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*1030/-278
=3.71

* 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.


GE Aerospace  (LIM: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

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


GE Aerospace (LIM:GE) Business Description

Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the conglomerate based on lean principles.

GE Aerospace (LIM:GE) Headlines