General Electric Co (NYSE:GE) Interest Coverage

: 2.95 (As of Jun. 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. General Electric Co's Operating Income for the three months ended in Jun. 2023 was $788 Mil. General Electric Co's Interest Expense for the three months ended in Jun. 2023 was $-267 Mil. General Electric Co's interest coverage for the quarter that ended in Jun. 2023 was 2.95. The higher the ratio, the stronger the company's financial strength is.

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

GE' s Interest Coverage Range Over the Past 10 Years
Min: 0.12 Med: 1.96 Max: 5.66
Current: 2.06

GE's Interest Coverage is ranked worse than
89.11% of 2231 companies
in the Industrial Products industry
Industry Median: 12.99 vs GE: 2.06

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

General Electric Co Interest Coverage Historical Data

The historical data trend for General Electric Co'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.

* Premium members only.

General Electric Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

1.42

1.76

0.12

1.96

1.68

General Electric Co Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Interest Coverage																1.84	0.62	2.95	1.86	2.95

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co'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.

Annual Data Quarterly Data

General Electric Co Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where General Electric Co's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

General Electric Co 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.

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

General Electric Co's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, General Electric Co's Interest Expense was $-1,607 Mil. Its Operating Income was $2,693 Mil. And its Long-Term Debt & Capital Lease Obligation was $30,986 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	2693	/	-1607
	=	1.68

General Electric Co's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the three months ended in Jun. 2023, General Electric Co's Interest Expense was $-267 Mil. Its Operating Income was $788 Mil. And its Long-Term Debt & Capital Lease Obligation was $19,900 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2023 )	/	Interest Expense (Q: Jun. 2023 )
	=	-1	*	788	/	-267
	=	2.95

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

General Electric Co (NYSE:GE) 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 .

General Electric Co Interest Coverage Related Terms

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

General Electric Co (NYSE:GE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » General Electric Co (NYSE:GE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

GE:Peru GE:Mexico GEC:UK GNE:France GCP:Germany GE:Germany GCP:Germany GCP:Germany GE:Chile GE:Switzerland GEOO34:Brazil GE:Argentina

Address

5 Necco Street, Boston, MA, USA, 02210

Website

https://www.ge.com

GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by former Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the storied conglomerate based on lean principles.

Executives

Rahul Ghai	officer: Senior Vice President	GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Jessica R. Uhl	director	200 WEST STREET, NEW YORK NY 10282
Darren W Mcdew	director	100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Thomas S Timko	officer: Vice President	300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
L Kevin Cox	officer: Senior Vice President	THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Russell Stokes	officer: Senior Vice President	ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Scott Strazik	officer: Senior Vice President	ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Michael J Holston	officer: Senior Vice President	GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Happe Carolina Dybeck	officer: Senior Vice President	5 NECCO STREET, BOSTON MA 02210
John S. Slattery	officer: Executive Vice President	5 NECCO STREET, BOSTON MA 02210
Thomas W Horton	director	4333 AMON CARTER BLVD., FORTH WORTH TX 76155
Isabella D Goren	director	C/O LYONDELLBASELL INDUSTRIES N V, DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Francisco Dsouza	director	500 GLENPOINTE CENTRE W, TEANECK NJ 07666
Risa J Lavizzo-mourey	director	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Paula Rosput Reynolds	director	605 HILLSIDE DRIVE EAST, SEATTLE WA 98112