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Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) Interest Coverage : 5.04 (As of Dec. 2023)


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What is Booz Allen Hamilton Holding 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. Booz Allen Hamilton Holding's Operating Income for the three months ended in Dec. 2023 was $248 Mil. Booz Allen Hamilton Holding's Interest Expense for the three months ended in Dec. 2023 was $-49 Mil. Booz Allen Hamilton Holding's interest coverage for the quarter that ended in Dec. 2023 was 5.04. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Booz Allen Hamilton Holding's Interest Coverage or its related term are showing as below:

BAH' s Interest Coverage Range Over the Past 10 Years
Min: 3.83   Med: 7.09   Max: 13.4
Current: 4.13


BAH's Interest Coverage is ranked worse than
72.95% of 791 companies
in the Business Services industry
Industry Median: 13.4 vs BAH: 4.13

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


Booz Allen Hamilton Holding Interest Coverage Historical Data

The historical data trend for Booz Allen Hamilton Holding'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.

Booz Allen Hamilton Holding Interest Coverage Chart

Booz Allen Hamilton Holding Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.05 7.42 13.40 9.76 3.83

Booz Allen Hamilton Holding 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.80 - 6.17 5.65 5.04

Competitive Comparison of Booz Allen Hamilton Holding's Interest Coverage

For the Consulting Services subindustry, Booz Allen Hamilton Holding'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.


Booz Allen Hamilton Holding's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Booz Allen Hamilton Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Booz Allen Hamilton Holding's Interest Coverage falls into.



Booz Allen Hamilton Holding 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.

Booz Allen Hamilton Holding's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Booz Allen Hamilton Holding's Interest Expense was $-117 Mil. Its Operating Income was $447 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,969 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2023 )/Interest Expense (A: Mar. 2023 )
=-1*446.848/-116.737
=3.83

Booz Allen Hamilton Holding's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Booz Allen Hamilton Holding's Interest Expense was $-49 Mil. Its Operating Income was $248 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,535 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*247.558/-49.093
=5.04

* 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.

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


Booz Allen Hamilton Holding  (NYSE:BAH) 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 .


Booz Allen Hamilton Holding Interest Coverage Related Terms

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


Booz Allen Hamilton Holding (Booz Allen Hamilton Holding) Business Description

Traded in Other Exchanges
Address
8283 Greensboro Drive, Hamilton Building, McLean, VA, USA, 22102
Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government. Other services offered include technology, such as cloud computing and cybersecurity consulting, and engineering consulting. The consulting services are focused on defense, intelligence, and civil markets. In addition to the U.S. government, Booz Allen Hamilton provides its management and technology consulting services to large corporations, institutions, and nonprofit organizations. The company assists clients in long-term engagements around the globe.
Executives
Kristine Anderson officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Melody C Barnes director 1631 MONUMENT AVENUE, RICHMOND VA 23220
Ralph W Shrader director, officer: President and CEO, other: Member of 13D Group 8283 GREENSBORO, MCLEAN VA 22102
Horacio Rozanski officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Nancy Laben officer: EVP and General Counsel, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Susan L Penfield officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Elizabeth M Thompson officer: SVP & Chief Personnel Officer, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Rory P Read director ONE DELL WAY, ROUND ROCK TX 78682
Richard Crowe officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Matthew Calderone officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Lloyd Jr Howell officer: Executive Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Thomas Pfeifer officer: Executive Vice President 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Karen M Dahut officer: Senior Vice President, other: Member of 13D Group 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Scott M Murphy officer: VP, PAO & Controller 8283 GREENSBORO DRIVE, MCLEAN VA 22102
Gretchen W Mcclain director XYLEM INC., 1133 WESTCHESTER AVENUE, SUITE N200, WHITE PLAINS NY 10604