Astec Industries (Astec Industries) Interest Coverage

: 7.76 (As of Dec. 2023)

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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. Astec Industries's Operating Income for the three months ended in Dec. 2023 was $19 Mil. Astec Industries's Interest Expense for the three months ended in Dec. 2023 was $-3 Mil. Astec Industries's interest coverage for the quarter that ended in Dec. 2023 was 7.76. The higher the ratio, the stronger the company's financial strength is.

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

ASTE' s Interest Coverage Range Over the Past 10 Years
Min: 6.11 Med: 31.03 Max: 71.8
Current: 6.11

ASTE's Interest Coverage is ranked worse than
61.73% of 162 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.25 vs ASTE: 6.11

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

Astec Industries Interest Coverage Historical Data

The historical data trend for Astec 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.

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Astec Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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20.21

69.43

20.36

6.60

6.11

Astec 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															8.67	10.65	9.20	-	7.76

Competitive Comparison

For the Farm & Heavy Construction Machinery subindustry, Astec 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.

Astec Industries Interest Coverage Distribution

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

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

Astec 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.

Astec 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, Astec Industries's Interest Expense was $-9 Mil. Its Operating Income was $54 Mil. And its Long-Term Debt & Capital Lease Obligation was $72 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	54.4	/	-8.9
	=	6.11

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

Here, for the three months ended in Dec. 2023, Astec Industries's Interest Expense was $-3 Mil. Its Operating Income was $19 Mil. And its Long-Term Debt & Capital Lease Obligation was $72 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.4	/	-2.5
	=	7.76

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

Astec Industries (NAS:ASTE) 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 .

Astec Industries Interest Coverage Related Terms

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Astec Industries (Astec Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Astec Industries Inc (NAS:ASTE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AI2:Germany

Address

1725 Shepherd Road, Chattanooga, TN, USA, 37421

Website

https://www.astecindustries.com

Astec Industries Inc designs and manufactures equipment and components used primarily in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. It has two operating segments: infrastructure solutions and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.

Executives

Winford James Murphy Jr	director	213 NORMANDIE DRIVE, OPELOUSAS LA 70570
Barend Snyman	officer: Group President	3906 LOBLOLLY LANE, VALDOSTA GA 31601
Nalin Jain	director	30 ISABELLA ST., PITTSBURGH PA 15212
Westinghouse Air Brake Technologies Corp	director	30 ISABELLA STREET, PITTSBURGH PA 15212
Mark Joseph Gliebe	director	200 STATE STREET, BELOIT WI 53511
Linda I. Knoll	director	5800 KNOB HILL CR, CLARKSON TN 48348
Litchfield Matthew T Sr	officer: Chief Information Officer	1725 SHEPHERD RD, CHATTANOOGA TN 37421
Timothy A Averkamp	officer: Group President	1725 SHEPHERD RD, CHATTANOOGA TN 37421
Merwe Jaco Van Der	officer: Group President	1725 SHEPHERD RD, CHATTANOOGA TN 37421
Anshu Pasricha	officer: GC and Corp Secretary	1725 SHEPHERD ROAD, CHATTANOOGA TN 37421
Mary L Howell	director	1101 PENNSYLVANIA AVE STE 400, WASHINGTON DC 20004
Tracey H Cook	director	1725 SHEPHERD RD, CHATTANOOGA TN 37421
William Bradley Southern	director	1610 WEST END AVENUE, NASHVILLE TN 37203
James B Baker	director	1725 SHEPHERD ROAD, CHATTANOOGA TN 37421
William Glenwood Dorey	director	PO BOX 50085, WATSONVILLE CA 95077-5085