Aviva (AVVIY) Interest Coverage : 7.55 (As of Dec. 2023)

View and export this data going back to 2009. Start your Free Trial

What is Aviva 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 EBIT by its Interest Expense. Aviva's EBIT for the six months ended in Dec. 2023 was $1,415 Mil. Aviva's Interest Expense for the six months ended in Dec. 2023 was $-187 Mil. Aviva's interest coverage for the quarter that ended in Dec. 2023 was 7.55. The higher the ratio, the stronger the company's financial strength is.

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

AVVIY' s Interest Coverage Range Over the Past 10 Years
Min: 2.26 Med: 4.65 Max: 7.69
Current: 4.59

AVVIY's Interest Coverage is ranked worse than
75.62% of 324 companies
in the Insurance industry
Industry Median: 13.355 vs AVVIY: 4.59

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

Aviva Interest Coverage Historical Data

The historical data trend for Aviva'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.

Aviva Interest Coverage Chart

Aviva Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

7.69

4.65

2.26

4.59

Aviva Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.80	-	-	2.86	7.55

Competitive Comparison of Aviva's Interest Coverage

For the Insurance - Diversified subindustry, Aviva'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.

Aviva's Interest Coverage Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Aviva's Interest Coverage distribution charts can be found below:

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

Aviva 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 EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT 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.

Aviva'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, Aviva's Interest Expense was $-508 Mil. Its EBIT was $2,332 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,475 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2331.646	/	-507.595
	=	4.59

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

Here, for the six months ended in Dec. 2023, Aviva's Interest Expense was $-187 Mil. Its EBIT was $1,415 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,475 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1415.19	/	-187.342
	=	7.55

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

Aviva (OTCPK:AVVIY) 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 .

Aviva Interest Coverage Related Terms

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

Aviva (AVVIY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Aviva PLC (OTCPK:AVVIY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AIVAF:USA AVl:UK AV.B.PFD:UK AV.A.PFD:UK AV.:UK GU81:Germany GU80:Germany GU81:Germany

Address

St Helen's, 1 Undershaft, London, GBR, EC3P 3DQ

Website

https://www.aviva.com

Aviva is a multiline insurer that is listed on the London Stock Exchange. The company traces its roots back to the 17th century with the establishment of Hand-in-Hand. After the Great Fire of London, this mutual was formed to provide protection against fires. Hand-in-Hand was then acquired by Commercial Union in 1905. Over the years, Hand-in-Hand insured London landmarks such as London Bridge, the British Museum, and the Palace in Lambeth. The life insurance part of Aviva began in the early part of the 18th century with the establishment of Amicable, again a mutual society but this time to protect widows and children against the loss of life.