Luna Innovations (Luna Innovations) Interest Coverage

: 1.88 (As of Sep. 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. Luna Innovations's Operating Income for the three months ended in Sep. 2023 was $1.2 Mil. Luna Innovations's Interest Expense for the three months ended in Sep. 2023 was $-0.6 Mil. Luna Innovations's interest coverage for the quarter that ended in Sep. 2023 was 1.88. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Luna Innovations's Interest Coverage or its related term are showing as below:

LUNA' s Interest Coverage Range Over the Past 10 Years
Min: 0.14 Med: 17.3 Max: 434.3
Current: 0.14

LUNA's Interest Coverage is ranked worse than
99.31% of 1599 companies
in the Hardware industry
Industry Median: 12.75 vs LUNA: 0.14

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

Luna Innovations Interest Coverage Historical Data

The historical data trend for Luna Innovations'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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Luna Innovations Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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8.13

434.30

17.30

Luna Innovations Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Interest Coverage	Get a 7-Day Free Trial															6.78	3.53	-	-	1.88

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Luna Innovations'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.

Luna Innovations Interest Coverage Distribution

For the Hardware industry and Technology sector, Luna Innovations's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Luna Innovations's Interest Coverage falls into.

Luna Innovations 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.

Luna Innovations'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, Luna Innovations's Interest Expense was $-0.9 Mil. Its Operating Income was $-1.9 Mil. And its Long-Term Debt & Capital Lease Obligation was $23.5 Mil.

Luna Innovations did not have earnings to cover the interest expense.

Luna Innovations's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Luna Innovations's Interest Expense was $-0.6 Mil. Its Operating Income was $1.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $35.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	1.152	/	-0.613
	=	1.88

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

Luna Innovations (NAS:LUNA) 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 .

Luna Innovations Interest Coverage Related Terms

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Luna Innovations (Luna Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Luna Innovations Inc (NAS:LUNA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

301 1st Street South West, Suite 200, Roanoke, VA, USA, 24011

Website

https://www.lunainc.com

Luna Innovations Inc is engaged in optical technology, providing high-performance fiber optic test, measurement, and control products for the telecommunications, and photonics industries, and distributed fiber optic sensing solutions that measure and monitor materials and structures for applications in aerospace, automotive, oil, and gas, security, and infrastructure. Its Lightwave segment develops, manufactures, and markets optical measurements technologies like Sensing including short, medium, and long-range distributed fiber optic sensing solutions and Terahertz measurement products, and Communications test and photonic control including test equipment for communications devices and networks and specialty laser and photonic components. It derives a majority of its revenue from the U.S.

Executives

George Gomez-quintero	officer: Chief Financial Officer	LUNA INNOVATIONS INCORPORATED, 301 FIRST STREET SW, SUITE 200, ROANOKE VA 24011
Pamela L Coe	director	C/O EXPEDIA, INC., 333 108TH AVENUE NE, BELLEVUE WA 98004
Brian Soller	officer: Chief Operating Officer	301 1ST STREET, SW, SUITE 200, ROANOKE VA 24011
Gene Nestro	officer: Chief Financial Officer	C/O LUNA INNOVATIONS, INC., 301 1ST STREET, SW, SUITE 200, ROANOKE VA 24011
Clinic Carilion	10 percent owner	EDWARD MURPHY, M.D., 213 SOUTH JEFFERSON STREET, SUITE 807, ROANOKE VA 24011
Mary Beth Vitale	director	821 17TH STREET, DENVER CO 80202
Dale E Messick	officer: Chief Financial Officer	LUNA INNOVATIONS INCORPORATED, 2851 COMMERCE STREET, BLACKSBURG VA 24060
Scott A Graeff	officer: CFO, Executive VP Corp. Dev.	LUNA INNOVATIONS INCORPORATED, 2851 COMMERCE STREET, BLACKSBURG VA 24060
Barry Phelps	director	26750 AGOURA RD, CALABASAS CA 91302
Michael W. Wise	director	C/O LUNA INNOVATIONS INCORPORATED, 1 RIVERSIDE CIRCLE, SUITE 400, ROANOKE VA 24016
Richard Roedel	director	164 WEST RD, NEW CANAAN CT 06840
Donald Pastor	director	2925 BOARDWALK, ANN ARBOR MI 48104
Gary Spiegel	director
Coringrato Edward J Jr.	director	301 1ST STREET, SW, SUITE 200, ROANOKE VA 24011
Wilkin Neil D Jr	director