Navistar International (Navistar International) Interest Coverage : 0.63 (As of Apr. 2021)

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What is Navistar International 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. Navistar International's Operating Income for the three months ended in Apr. 2021 was $39 Mil. Navistar International's Interest Expense for the three months ended in Apr. 2021 was $-62 Mil. Navistar International's interest coverage for the quarter that ended in Apr. 2021 was 0.63. The higher the ratio, the stronger the company's financial strength is.

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

NAV's Interest Coverage is not ranked ^*
in the Farm & Heavy Construction Machinery industry.
Industry Median: 9.905
* Ranked among companies with meaningful Interest Coverage only.

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

Navistar International Interest Coverage Historical Data

The historical data trend for Navistar International'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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Navistar International Interest Coverage Chart

Navistar International Annual Data

Trend

Oct11

Oct12

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Interest Coverage

Get a 7-Day Free Trial

0.76

1.51

2.47

2.41

Navistar International Quarterly Data
	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21
Interest Coverage	Get a 7-Day Free Trial															0.84	1.03	-	0.25	0.63

Competitive Comparison of Navistar International's Interest Coverage

For the Farm & Heavy Construction Machinery subindustry, Navistar International'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.

Navistar International's Interest Coverage Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Navistar International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Navistar International's Interest Coverage falls into.

Navistar International 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.

Navistar International's Interest Coverage for the fiscal year that ended in Oct. 2020 is calculated as

Here, for the fiscal year that ended in Oct. 2020, Navistar International's Interest Expense was $-268 Mil. Its Operating Income was $-60 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,690 Mil.

Navistar International did not have earnings to cover the interest expense.

Navistar International's Interest Coverage for the quarter that ended in Apr. 2021 is calculated as

Here, for the three months ended in Apr. 2021, Navistar International's Interest Expense was $-62 Mil. Its Operating Income was $39 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,624 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Apr. 2021 )	/	Interest Expense (Q: Apr. 2021 )
	=	-1	*	39	/	-62
	=	0.63

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

Navistar International (NYSE:NAV) 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 .

Navistar International Interest Coverage Related Terms

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

Navistar International (Navistar International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Navistar International Corp (NYSE:NAV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

2701 Navistar Drive, Lisle, IL, USA, 60532

Website

https://www.navistar.com

Navistar International Corp is a manufacturer of medium & heavy-duty trucks, school buses, military vehicles, and diesel engines. Its operating segments are Truck, which accounts for the majority revenue; Parts; Global Operations; and Financial Services. The company manufactures Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, and student and commercial transportation markets under the International and IC brands. Its geographical segments include the United States, Brazil, Mexico, Canada, and others, of which the majority of its revenue comes from the United States.

Executives

Dennis Suskind	director	ONE NORTH END AVENUE, WORLD FINANCIAL CENTER, NEW YORK NY 10282
Rachesky Mark H Md	director, 10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Raymond T. Miller	director	1345 AVENUE OF THE AMERICAS, 42ND FLOOR C/O MHR FUND MANAGEMENT NEW YORK NY 10105
Persio V Lisboa	officer: EVP & Chief Operating Officer	C/O NAVISTAR INTERNATIONAL CORPORATION, 2701 NAVISTAR DRIVE, LISLE IL 60532
Jose Maria Alapont	director	5725 DELPHI DRIVE, TROY MI 48098
Andreas Renschler	director	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Vincent J Intrieri	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
William V Mcmenamin	officer: President Fin Serv & Treasurer	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Curt A Kramer	officer: SVP & General Counsel	4201 WINFIELD ROAD WARRENVILLE IL 60555
Troy A Clarke	director, officer: Chairman, President & CEO	C/O FUEL SYSTEMS SOLUTIONS, INC., 780 THIRD AVE. 25TH FLOOR, NEW YORK NY 10017
Walter G Borst	officer: EVP & Chief Financial Officer	2701 NAVISTAR DRIVE, LISLE IL 60532
Samara A Strycker	officer: SVP & Corporate Controller	2701 NAVISTAR DRIVE, LISLE IL 60532
Richard E Bond	officer: Corporate Secretary	NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Christian Schulz	director	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Daniel A Ninivaggi	director	C/O ICAHN ENTERPRISES L.P., 767 FIFTH AVENUE, SUITE 4600, NEW YORK NY 10153