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General Electric Co Interest Coverage

: 2.19 (As of Sep. 2021)
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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 Sep. 2021 was $1,010 Mil. General Electric Co's Interest Expense for the three months ended in Sep. 2021 was $-462 Mil. General Electric Co's interest coverage for the quarter that ended in Sep. 2021 was 2.19. 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:


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.82 - 1.42 1.88 0.49

General Electric Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 0.05 - 1.15 1.45 2.19

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.

   

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 into.



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. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, General Electric Co's Interest Expense was $-3,273 Mil. Its Operating Income was $1,615 Mil. And its Long-Term Debt & Capital Lease Obligation was $70,289 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*1615/-3273
=0.49

General Electric Co's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, General Electric Co's Interest Expense was $-462 Mil. Its Operating Income was $1,010 Mil. And its Long-Term Debt & Capital Lease Obligation was $57,429 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*1010/-462
=2.19

* 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.


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 Business Description

General Electric Co logo
Industry
Industrials » Industrial Products NAICS : 335312 SIC : 3621
Address
5 Necco Street, Boston, MA, USA, 02210
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, precision health, 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, onshore and offshore wind turbines, as well as medical diagnostic and mobile equipment. 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 alum Larry Culp who is leading a multi-year turnaround of the storied conglomerate based on Lean principles.
Executives
Horton Thomas W director 4333 AMON CARTER BLVD. FORTH WORTH TX 76155
Rosput Paula G director 605 HILLSIDE DRIVE EAST SEATTLE WA 98112
Trian Fund Management, L.p. director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Garden Edward P director 280 PARK AVE 41ST FL NEW YORK NY 10017
Lavizzo-mourey Risa J director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Tisch James S director 667 MADISON AVE NEW YORK NY 10021
Bazin Sebastien director 5 NECCO STREET 5 NECCO STREET BOSTON MA 02210
Dsouza Francisco director 500 GLENPOINTE CENTRE W TEANECK NJ 07666
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Lesjak Catherine A director 1501 PAGE MILL RD PALO ALTO CA 94304
Carter Ashton B director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Pecresse Jerome officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210
Murphy Kieran Pius officer: Senior Vice President THE GROVE CENTRE,WHITE LION ROAD LITTLE CHALFONT X0 HP7 9LL
Joyce David Leon officer: Vice Chairman GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Stokes Russell officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210

General Electric Co Headlines

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