B/E Aerospace (B/E Aerospace) Interest Coverage : 0.68 (As of Dec. 2016)

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What is B/E 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. B/E Aerospace's Operating Income for the three months ended in Dec. 2016 was $109 Mil. B/E Aerospace's Interest Expense for the three months ended in Dec. 2016 was $-159 Mil. B/E Aerospace's interest coverage for the quarter that ended in Dec. 2016 was 0.68. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for B/E Aerospace's Interest Coverage or its related term are showing as below:

BEAV's Interest Coverage is not ranked ^*
in the Aerospace & Defense industry.
Industry Median: 6.98
* Ranked among companies with meaningful Interest Coverage only.

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

B/E Aerospace Interest Coverage Historical Data

The historical data trend for B/E 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.

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B/E Aerospace Interest Coverage Chart

B/E Aerospace Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Interest Coverage

Get a 7-Day Free Trial

4.34

5.14

2.94

4.77

5.56

B/E Aerospace Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Interest Coverage	Get a 7-Day Free Trial															0.74	5.60	6.02	N/A	0.68

Competitive Comparison of B/E Aerospace's Interest Coverage

For the Aerospace & Defense subindustry, B/E 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.

B/E Aerospace's Interest Coverage Distribution in the Aerospace & Defense Industry

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

* The bar in red indicates where B/E Aerospace's Interest Coverage falls into.

B/E 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.

B/E Aerospace's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, B/E Aerospace's Interest Expense was $-91 Mil. Its Operating Income was $507 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,037 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2016 )	/	Interest Expense (A: Dec. 2016 )
	=	-1	*	506.6	/	-91.1
	=	5.56

B/E Aerospace's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Here, for the three months ended in Dec. 2016, B/E Aerospace's Interest Expense was $-159 Mil. Its Operating Income was $109 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,037 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2016 )	/	Interest Expense (Q: Dec. 2016 )
	=	-1	*	108.6	/	-159.3
	=	0.68

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

B/E Aerospace (NAS:BEAV) 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 .

B/E Aerospace Interest Coverage Related Terms

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B/E Aerospace (B/E Aerospace) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » B/E Aerospace Inc (NAS:BEAV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.beaerospace.com

B/E Aerospace Inc is a Delaware corporation incorporated in 1987. The Company manufactures aircraft cabin interior products. It designs, develops and manufactures products for both commercial aircrafts and business jets. It offers products including aircraft cabin seating, lighting systems, oxygen systems, food and beverage preparation and storage equipment, galley systems, and modular lavatory systems. It also provides cabin interior reconfiguration, program management and certification services. In addition, it also designs, engineers and manufactures customized and fully integrated thermal and power management solutions. The Company sells and supports its products through its direct sales and product support organization. The Company's operations are subject to changing federal, state and foreign laws and regulations establishing health and environmental quality standards, including those governing discharges of pollutants into the air and water and the management and disposal of hazardous substances and wastes.

Executives

James F Albaugh	director	C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
David J Anderson	director	C/O HONEYWELL INTERNATIONAL INC, 101 COLUMBIA ROAD, MORRISTOWN NJ 09762
Mary M Vandeweghe	director	1601 W. DIEHL ROAD, NAPERVILLE IL 60563
Amin J Khoury	director, officer: Executive Chairman	1300 CORPORATE CENTER WAY, WELLINGTON FL 33414
Joseph T Lower	officer: VP and CFO	200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301
Richard Hamermesh	director	C/O BE AEROSPACE, INC., 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
John T Whates	director	1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
John A Cuomo	officer: Vice President & GM	6348 WALKER LANE, ALEXANDRIA VA 22310
Thomas P Mccaffrey	officer: Sr. VP & CFO	1300 CORPORATE CENTER WAY, WELLINGTON FL 33414
Charles L Chadwell	director	C/O BE AEROSPACE, INC., 1400 CORPORATE CENTER WAY, WELLINGTON FL 33414
Kyri Loupis	other: VP/CFO Consumable Mgmt Grp	C/O JULIEN YOO, GOLDMAN SACHS, 200 WEST STREET, NEW YORK NY 10282
David C Hurley	director	C/O BE AEROSPACE INC, 1400 CORPORATE CENTERWAY, WELLINGTON FL 33414
Brian H Rowe	director	538 COMMONS DRIVE, GOLDEN CO 80401