Altra Industrial Motion (Altra Industrial Motion) Interest Coverage : 3.60 (As of Dec. 2022)

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What is Altra Industrial Motion 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. Altra Industrial Motion's Operating Income for the three months ended in Dec. 2022 was $53 Mil. Altra Industrial Motion's Interest Expense for the three months ended in Dec. 2022 was $-15 Mil. Altra Industrial Motion's interest coverage for the quarter that ended in Dec. 2022 was 3.60. The higher the ratio, the stronger the company's financial strength is.

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

AIMC' s Interest Coverage Range Over the Past 10 Years
Min: 2.57 Med: 5.26 Max: 11.27
Current: 5.03

AIMC's Interest Coverage is not ranked
in the Industrial Products industry.
Industry Median: 13.79 vs AIMC: 5.03

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

Altra Industrial Motion Interest Coverage Historical Data

The historical data trend for Altra Industrial Motion'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.

Altra Industrial Motion Interest Coverage Chart

Altra Industrial Motion Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

Get a 7-Day Free Trial

3.19

3.23

3.22

2.57

5.03

Altra Industrial Motion Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Interest Coverage	Get a 7-Day Free Trial															1.07	6.56	5.63	4.77	3.60

Competitive Comparison of Altra Industrial Motion's Interest Coverage

For the Specialty Industrial Machinery subindustry, Altra Industrial Motion'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.

Altra Industrial Motion's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where Altra Industrial Motion's Interest Coverage falls into.

Altra Industrial Motion 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.

Altra Industrial Motion'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, Altra Industrial Motion's Interest Expense was $-52 Mil. Its Operating Income was $259 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,055 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	258.8	/	-51.5
	=	5.03

Altra Industrial Motion's Interest Coverage for the quarter that ended in Dec. 2022 is calculated as

Here, for the three months ended in Dec. 2022, Altra Industrial Motion's Interest Expense was $-15 Mil. Its Operating Income was $53 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,055 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2022 )	/	Interest Expense (Q: Dec. 2022 )
	=	-1	*	52.9	/	-14.7
	=	3.60

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

Altra Industrial Motion (NAS:AIMC) 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 .

Altra Industrial Motion Interest Coverage Related Terms

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

Altra Industrial Motion (Altra Industrial Motion) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Altra Industrial Motion Corp (NAS:AIMC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 Granite Street, Suite 201, Braintree, MA, USA, 02184

Website

https://www.altramotion.com

Altra Industrial Motion Corp is a United States-based company that designs, manufactures, and sells a wide range of electromechanical power transmission motion control. The company operates through two business segments based on product types and end markets served: the power transmission technologies segment and the automation and specialty segment. The company's product portfolio consists of products such as clutches, brakes, gears, and motion controllers and braking systems, which are used in heavy industrial applications, energy markets, medical, packaging, automation, robotic, and other industries. The company earns majority of its revenue in North America ( primarily the United States).

Executives

La Vonda Williams	director	201 MONTGOMERY STREET, #751, JERSEY CITY NJ 07302
Haughey Nicole Parent	director	UNITED TECHNOLOGIES CORPORATION, ONE FINANCIAL PLAZA, HARTFORD CT 06101
Margot Hoffman	director	6368 CHAMPIONS DRIVE, WESTERVILLE OH 43082
Thomas W Swidarski	director	5995 MAYFAIR RD, P O BOX 3077, NORTH CANTON OH 44720
Todd Patriacca	officer: EVP, CFO and Treasurer	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Glenn E. Deegan	officer: Chief Legal and HR Officer	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
J Scott Hall	director	1200 ABERNATHY ROAD NE, SUITE 1200, ATLANTA GA 30328
Christian Storch	officer: Chief Financial Officer	C/O ALTRA INDUSTRIAL MOTION, 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
Woodward James H Jr	director	7140 OFFICE CIRCLE, EVANSVILLE IN 47716
Craig Schuele	officer: VP Mktg&Bus Dev (see Remarks)	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Carl R Christenson	officer: President and COO	C/O ALTRA INDUSTRIAL MOTION INC., 300 GRANITE STREET, BRAINTREE MA 02184
Lyle G. Ganske	director	C/O ALTRA INDUSTRIAL MOTION, INC., 300 GRANITE STREET SUITE 201, BRAINTREE MA 02184
Larry Mcpherson	director	C/O MEDICAL STAFFING NETWORK HOLDINGS, 901 YAMATO ROAD, SUITE 110, BOCA RATON FL 33431
Lipscomb S Michael	director	SIFCO INDUSTRIES, INC., 970 EAST 64TH STREET, CLEVELAND OH 44103
Patrick K Murphy	director	C/O FORTIVE CORPORATION, 6920 SEAWAY BOULEVARD, EVERETT WA 98203