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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. Luna Innovations's
Operating Income
for the
three
months ended in Sep. 2023 was $1.2 Mil. Luna Innovations's Interest Expense for the
three
months ended in Sep. 2023 was $-0.6 Mil.
Luna Innovations's interest coverage for the quarter that ended in Sep. 2023 was 1.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Luna Innovations's Interest Coverage or its related term are showing as below:
LUNA's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 14.56 * Ranked among companies with meaningful Interest Coverage only.
Luna Innovations (OTCPK:LUNA) 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 .
Luna Innovations Interest Coverage Related Terms
Luna Innovations Interest Coverage Historical Data
* Premium members only.
The historical data trend for Luna Innovations'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.
LUNA vs ODYS, WRAP, SOTK: Interest Coverage Comparison
For the Scientific & Technical Instruments subindustry, Luna Innovations'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.
Luna Innovations Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Luna Innovations's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Luna Innovations's Interest Coverage falls into.
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:
* 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.
Luna Innovations (LUNA) has a Interest Coverage of 1.88 as of Sep. 2023. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luna Innovations and its competitors.
Is Luna Innovations' Interest Coverage too high?
Luna Innovations' current Interest Coverage is 1.88. The Hardware industry median Interest Coverage is 14.56. Luna Innovations' value of 1.88 is 87.1% below this industry median. Overall, Luna Innovations has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Luna Innovations' Interest Coverage compare to ODYS and WRAP?
Luna Innovations' Interest Coverage of 1.88 can be compared against companies in the Hardware industry. The industry median Interest Coverage is 14.56. Luna Innovations' value of 1.88 is 87.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 14.56, based on 1,670 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luna Innovations's current Interest Coverage of 1.88 is 87.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luna Innovations and its competitors. For the Hardware industry, the median Interest Coverage is 14.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luna Innovations's current Interest Coverage is 1.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luna Innovations stock overvalued right now?
Luna Innovations (LUNA) has a current Interest Coverage of 1.88. The current Interest Coverage is 1.88 and 87.1% below the Hardware industry median of 14.56. Luna Innovations' overall GF Score™ is 16/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Luna Innovations (LUNA), the current Interest Coverage is 1.88 as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Luna Innovations Inc is engaged in optical technology, providing high-performance fiber optic test, measurement, and control products for the telecommunications, and photonics industries, and distributed fiber optic sensing solutions that measure and monitor materials and structures for applications in aerospace, automotive, oil, and gas, security, and infrastructure. Its Lightwave segment develops, manufactures, and markets optical measurements technologies like Sensing including short, medium, and long-range distributed fiber optic sensing solutions and Terahertz measurement products, and Communications test and photonic control including test equipment for communications devices and networks and specialty laser and photonic components. It derives a majority of its revenue from the U.S.
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