ITT (ITT) Interest Coverage : 39.57 (As of Dec. 2023)

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What is ITT 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. ITT's Operating Income for the three months ended in Dec. 2023 was $119 Mil. ITT's Interest Expense for the three months ended in Dec. 2023 was $-3 Mil. ITT's interest coverage for the quarter that ended in Dec. 2023 was 39.57. The higher the ratio, the stronger the company's financial strength is.

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

ITT' s Interest Coverage Range Over the Past 10 Years
Min: 32.16 Med: 176.13 Max: No Debt
Current: 50.78

ITT's Interest Coverage is ranked better than
73.62% of 2301 companies
in the Industrial Products industry
Industry Median: 13.79 vs ITT: 50.78

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

ITT Interest Coverage Historical Data

The historical data trend for ITT'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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ITT Interest Coverage Chart

ITT Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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N/A

70.58

50.78

ITT Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															35.42	35.51	56.80	102.21	39.57

Competitive Comparison of ITT's Interest Coverage

For the Specialty Industrial Machinery subindustry, ITT'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.

ITT's Interest Coverage Distribution in the Industrial Products Industry

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

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

ITT 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.

ITT's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, ITT's Interest Expense was $-10 Mil. Its Operating Income was $528 Mil. And its Long-Term Debt & Capital Lease Obligation was $78 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	528.1	/	-10.4
	=	50.78

ITT's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, ITT's Interest Expense was $-3 Mil. Its Operating Income was $119 Mil. And its Long-Term Debt & Capital Lease Obligation was $78 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	118.7	/	-3
	=	39.57

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

ITT (NYSE:ITT) 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 .

ITT Interest Coverage Related Terms

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

ITT (ITT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » ITT Inc (NYSE:ITT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2II:Germany 2II:Germany

Address

100 Washington Boulevard, 6th Floor, Stamford, CT, USA, 06902

Website

https://www.itt.com

ITT is a diversified industrial conglomerate with over $3 billion in sales. After the spinoffs of Xylem and Exelis in 2011, the company's products primarily include brake pads, shock absorbers, pumps, valves, connectors, and switches. Its customers include original-equipment and Tier 1 manufacturers as well as aftermarket customers. ITT uses a network of approximately 700 independent distributors, which accounts for about one third of overall revenue. Nearly three fourths of the company's sales are made in North America and Europe. ITT's primary end markets include automotive, rail, oil and gas, aerospace and defense, chemical, mining, and general industrial.

Executives

Ryan F. Flynn	officer: See Remarks	56 TECHNOLOGY DR., IRVINE CA 92618
Don Defosset	director	C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880
Nazzic S Keene	director	1710 SAIC DRIVE, MCLEAN VA 22102
Kevin C Berryman	director	521 WEST 57TH STREET, NEW YORK NY 10019
Maurine C. Lembesis	officer: See Remarks	8 RYANS RUN, PLEASANT VALLEY NY 12569
Carlo Ghirardo	officer: See Remarks	VIA BONINO, 5, BRA (CN) L6 12042
Fernando Roland	officer: SVP & Pres Industrial Process	100 WASHINGTON BLVD., 6TH FLOOR, STAMFORD CT 06902
Lori B. Marino	officer: SVP, General Counsel	100 WASHINGTON BLVD, STAMFORD CT 06902
De Mesa Graziano Cheryl	officer: VP, Chief Accounting Officer	80 GRASSLANDS ROAD, ELMSFORD NY 10523
Emmanuel Caprais	officer: Chief Financial Officer	1133 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Mary Elizabeth Gustafsson	officer: See Remarks	ITT CORPORATION, 1133 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Timothy H Powers	director	C/O RICHARD W DAVLES HUBBELL INC, 684 DERBY MILFORD RD, ORANGE CT 06477
Luca Savi	officer: See Remarks	C/O ITT CORPORATION, 1133 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Bartek Markowiecki	officer: SVP, Strategy & Corp Dev.	C/O ITT INC., 1133 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Orlando D Ashford	director	C/O AMERANT BANK, 220 ALHAMBRA CR., CORAL GABLES FL 33134