Advanced Energy Industries (Advanced Energy Industries) Interest Coverage : 4.42 (As of Dec. 2023)

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What is Advanced Energy Industries 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. Advanced Energy Industries's Operating Income for the three months ended in Dec. 2023 was $32 Mil. Advanced Energy Industries's Interest Expense for the three months ended in Dec. 2023 was $-7 Mil. Advanced Energy Industries's interest coverage for the quarter that ended in Dec. 2023 was 4.42. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Advanced Energy Industries's Interest Coverage or its related term are showing as below:

AEIS' s Interest Coverage Range Over the Past 10 Years
Min: 8.49 Med: 251.15 Max: No Debt
Current: 19.54

AEIS's Interest Coverage is ranked better than
57.68% of 2304 companies
in the Industrial Products industry
Industry Median: 13.775 vs AEIS: 19.54

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

Advanced Energy Industries Interest Coverage Historical Data

The historical data trend for Advanced Energy Industries'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.

Advanced Energy Industries Interest Coverage Chart

Advanced Energy Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

N/A

43.75

32.75

8.49

Advanced Energy Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															N/A	N/A	N/A	N/A	4.42

Competitive Comparison of Advanced Energy Industries's Interest Coverage

For the Electrical Equipment & Parts subindustry, Advanced Energy Industries'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.

Advanced Energy Industries's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Advanced Energy Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Advanced Energy Industries's Interest Coverage falls into.

Advanced Energy Industries 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.

Advanced Energy Industries'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, Advanced Energy Industries's Interest Expense was $-17 Mil. Its Operating Income was $141 Mil. And its Long-Term Debt & Capital Lease Obligation was $985 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	140.671	/	-16.566
	=	8.49

Advanced Energy Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Advanced Energy Industries's Interest Expense was $-7 Mil. Its Operating Income was $32 Mil. And its Long-Term Debt & Capital Lease Obligation was $985 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	31.841	/	-7.198
	=	4.42

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

Advanced Energy Industries (NAS:AEIS) 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 .

Advanced Energy Industries Interest Coverage Related Terms

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

Advanced Energy Industries (Advanced Energy Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Advanced Energy Industries Inc (NAS:AEIS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AVX:Germany

Address

1595 Wynkoop Street, Suite 800, Denver, CO, USA, 80202

Website

https://www.advancedenergy.com

Advanced Energy Industries Inc provides precision power-conversion measurement and control solutions that transform power into various forms for use in manufacturing and industrial equipment and applications. The firm serves original equipment manufacturers and end customers in the semiconductor, flat panel display, solar panel, and other industrial capital equipment markets. Products include thin-film power-conversion systems, which control and modify raw electrical power into a customizable, predictable power source, and power control modules, which control and measure temperature during manufacturing cycles. A majority of the firm's revenue is generated in the United States, with the rest primarily from Asia and Europe.

Executives

Anne Delsanto	director	1133 INNOVATION WAY, SUNNYVALE CA 94089
Ronald C Foster	director	8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Paul R Oldham	officer: EVP, CFO	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Lanesha Minnix	director	TWO LAKESIDE COMMONS, BUILDING TWO, 980 HAMMOND DRIVE, SUITE 500, ATLANTA GA 30328
Tina Donikowski	director	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
John Donaghey	officer: EVP, Global Sales	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Brian Shirley	director	8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716
Elizabeth Karpinski Vonne	officer: EVP, General Counsel	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Eduardo Bernal Acebedo	officer: EVP and COO	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Reed David	director	6501 WILLIAM CANNON DRIVE WEST, AUSTIN TX 78735
Stephen Douglas Kelley	officer: President and CEO	1900 S. PRICE ROAD, CHANDLER AZ 85286
Yuval Wasserman	officer: EVP, Sales, Service & Mktg	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Dana Edward Huth	officer: CHIEF REVENUE OFFICER	1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Thomas O Mcgimpsey	officer: EVP Gen Counsel & Corp Sec	380 INTERLOCKEN CRESCENT, BROOMFIELD CO 80021
Neil David Brinker	officer: EVP, COO	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525