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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. Orbital ATK's Operating Income for the three months ended in Mar. 2018 was $139 Mil. Orbital ATK's Interest Expense for the three months ended in Mar. 2018 was $-17 Mil. Orbital ATK's interest coverage for the quarter that ended in Mar. 2018 was 8.18. The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Orbital ATK'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.
The historical data trend for Orbital ATK'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.
Orbital ATK Annual Data | |||||||||||||||||||||
Trend | Mar08 | Mar09 | Mar10 | Mar11 | Mar12 | Mar13 | Mar14 | Mar15 | Dec16 | Dec17 | |||||||||||
Interest Coverage | Get a 7-Day Free Trial | 5.13 | - | 2.89 | 6.94 | 7.90 |
Orbital ATK Quarterly Data | ||||||||||||||||||||
Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | |
Interest Coverage | Get a 7-Day Free Trial | 6.53 | 8.00 | 8.35 | 8.75 | 8.18 |
For the Aerospace & Defense subindustry, Orbital ATK'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.
For the Aerospace & Defense industry and Industrials sector, Orbital ATK's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Orbital ATK's Interest Coverage falls into.
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.
Orbital ATK's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as
Here, for the fiscal year that ended in Dec. 2017, Orbital ATK's Interest Expense was $-67 Mil. Its Operating Income was $529 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,361 Mil.
Interest Coverage | = | -1 | * | Operating Income (A: Dec. 2017 ) | / | Interest Expense (A: Dec. 2017 ) |
= | -1 | * | 529 | / | -67 | |
= | 7.90 |
Orbital ATK's Interest Coverage for the quarter that ended in Mar. 2018 is calculated as
Here, for the three months ended in Mar. 2018, Orbital ATK's Interest Expense was $-17 Mil. Its Operating Income was $139 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,411 Mil.
Interest Coverage | = | -1 | * | Operating Income (Q: Mar. 2018 ) | / | Interest Expense (Q: Mar. 2018 ) |
= | -1 | * | 139 | / | -17 | |
= | 8.18 |
* 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.
Orbital ATK (NYSE:OA) 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 .
Thank you for viewing the detailed overview of Orbital ATK's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
Douglas L Maine | director | ALBEMARLE CORP, 451 FLORIDA ST, BATON ROUGE LA 70801 |
Christine Ann Wolf | officer: Former SVP Human Resources | 7480 FLYING CLOUG DRIVE, MINNEAPOLIS MN 55344 |
Tig H Krekel | director | HUGHES SPACE AND COMMUNICATIONS CO., PO BOX 92919, BLDG. S-10 - M/S S-302, LOS ANGELES CA 90009 |
Christopher Anthony Voci | officer: Former VP and Controller | C/O ORBITAL ATK, INC., 45101 WARP DRIVE, DULLES VA 20166 |
Thomas E Mccabe | officer: Former EVP and General Counsel | C/O ORBITAL SCIENCES CORPORATION, 45101 WARP DRIVE, DULLES VA 20166 |
Ronald T Kadish | director | 21839 ATLANTIC BOULEVARD, DULLES VA 20166 |
Ronald R Fogleman | director | C/O AAR CORP., 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191 |
David W Thompson | director, officer: Former President and CEO | 21700 ATLANTIC BLVD, ORBITAL SCIENCES CORP, DULLES VA 20166 |
Garrett E Pierce | officer: Former Chief Financial Officer | 21839 ATLANTIC BLVD, DULLES VA 20166 |
Janice I Obuchowski | director | 21700 ATLANTIC BLVD, ORBITAL SCIENCES CORP, DULLES VA 20166 |
Roman Iv Martinez | director | 90 OARJ AVE 4TH FLOOR, GREENPOINT BANK, NEW YORK NY 10016 |
Kevin P. Chilton | director | 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380 |
Roxanne J Decyk | director | 2801 80TH STREET, KENOSHA WI 53143 |
Blake E Larson | officer: Former Chief Operating Officer | 5050 LINCOLN DRIVE, EDINA MN 55436 |
Mark W Deyoung | director |
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