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GE (GE Aerospace) Interest Coverage : 9.54 (As of Mar. 2025)


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What is GE Aerospace 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. GE Aerospace's Operating Income for the three months ended in Mar. 2025 was $2,003 Mil. GE Aerospace's Interest Expense for the three months ended in Mar. 2025 was $-210 Mil. GE Aerospace's interest coverage for the quarter that ended in Mar. 2025 was 9.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for GE Aerospace'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: 2.69   Max: 8.01
Current: 8.01


GE's Interest Coverage is ranked better than
50.68% of 219 companies
in the Aerospace & Defense industry
Industry Median: 7.82 vs GE: 8.01

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


GE Aerospace Interest Coverage Historical Data

The historical data trend for GE Aerospace'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.

GE Aerospace Interest Coverage Chart

GE Aerospace Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.12 0.59 2.69 4.58 6.86

GE Aerospace Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 4.89 6.56 4.94 11.63 9.54

Competitive Comparison of GE Aerospace's Interest Coverage

For the Aerospace & Defense subindustry, GE Aerospace'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.


GE Aerospace's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, GE Aerospace's Interest Coverage distribution charts can be found below:

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


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GE Aerospace 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.

GE Aerospace's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, GE Aerospace's Interest Expense was $-986 Mil. Its Operating Income was $6,761 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,234 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*6761/-986
=6.86

GE Aerospace's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, GE Aerospace's Interest Expense was $-210 Mil. Its Operating Income was $2,003 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,487 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*2003/-210
=9.54

* 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.


GE Aerospace  (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 .


GE Aerospace Interest Coverage Related Terms

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


GE Aerospace Business Description

Address
1 Neumann Way, Evendale, Cleveland, OH, USA, 45215
GE Aerospace is the global leader in designing, manufacturing, and servicing large aircraft engines, along with partner Safran in their CFM joint venture. With its massive global installed base of nearly 70,000 commercial and military engines, GE Aerospace earns most of its profits on recurring service revenue of that equipment, which operates for decades. GE Aerospace is the remaining core business of the company formed in 1892 with historical ties to American inventor Thomas Edison; that company became a storied conglomerate with peak revenue of $130 billion in 2000 until GE spun off its appliance, finance, healthcare, and wind and power businesses between 2016 and 2024.
Executives
Russell Stokes officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Rahul Ghai officer: Senior Vice President GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Michael J Holston officer: Senior Vice President GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Scott Strazik officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Jessica R. Uhl director 200 WEST STREET, NEW YORK NY 10282
Thomas S Timko officer: Vice President 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
L Kevin Cox officer: Senior Vice President THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
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