Ultra Electronics Holdings (LSE:ULE) Interest Coverage : 8.43 (As of Dec. 2021)

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What is Ultra Electronics Holdings 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. Ultra Electronics Holdings's Operating Income for the six months ended in Dec. 2021 was £57.3 Mil. Ultra Electronics Holdings's Interest Expense for the six months ended in Dec. 2021 was £-6.8 Mil. Ultra Electronics Holdings's interest coverage for the quarter that ended in Dec. 2021 was 8.43. The higher the ratio, the stronger the company's financial strength is.

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

LSE:ULE' s Interest Coverage Range Over the Past 10 Years
Min: 6.69 Med: 9.89 Max: 20.2
Current: 9.49

LSE:ULE's Interest Coverage is not ranked
in the Aerospace & Defense industry.
Industry Median: 6.98 vs LSE:ULE: 9.49

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

Ultra Electronics Holdings Interest Coverage Historical Data

The historical data trend for Ultra Electronics Holdings'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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Ultra Electronics Holdings Interest Coverage Chart

Ultra Electronics Holdings Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

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8.82

6.69

8.60

10.50

9.46

Ultra Electronics Holdings Semi-Annual Data
	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21
Interest Coverage	Get a 7-Day Free Trial															9.98	10.00	10.88	10.79	8.43

Competitive Comparison of Ultra Electronics Holdings's Interest Coverage

For the Aerospace & Defense subindustry, Ultra Electronics Holdings'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.

Ultra Electronics Holdings's Interest Coverage Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where Ultra Electronics Holdings's Interest Coverage falls into.

Ultra Electronics Holdings 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.

Ultra Electronics Holdings's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Ultra Electronics Holdings's Interest Expense was £-12.1 Mil. Its Operating Income was £114.5 Mil. And its Long-Term Debt & Capital Lease Obligation was £166.7 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	114.5	/	-12.1
	=	9.46

Ultra Electronics Holdings's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the six months ended in Dec. 2021, Ultra Electronics Holdings's Interest Expense was £-6.8 Mil. Its Operating Income was £57.3 Mil. And its Long-Term Debt & Capital Lease Obligation was £166.7 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2021 )	/	Interest Expense (Q: Dec. 2021 )
	=	-1	*	57.3	/	-6.8
	=	8.43

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

Ultra Electronics Holdings (LSE:ULE) 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 .

Ultra Electronics Holdings Interest Coverage Related Terms

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Ultra Electronics Holdings (LSE:ULE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Ultra Electronics Holdings PLC (LSE:ULE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

35 Portman Square, London, GBR, W1H 6LR

Website

https://www.ultra.group

Ultra Electronics Holdings PLC provides electronic and software technologies for the defense, aerospace, security, transport, and energy markets. The company develops relationships with customers to identify needs and customize solutions. It has a wide product portfolio to sell differentiated technologies and systems for improving communication platforms. Thousands of contracts are created with a multitude of customers each year. It reports in three segments: Maritime; Intelligence and Communications and Critical Detection and Control. Approximately half of the revenue is derived from North America and around one-third comes from the United Kingdom.