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Ryder System (Ryder System) Interest Coverage

: 2.64 (As of Dec. 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. Ryder System's Operating Income for the three months ended in Dec. 2023 was $222 Mil. Ryder System's Interest Expense for the three months ended in Dec. 2023 was $-84 Mil. Ryder System's interest coverage for the quarter that ended in Dec. 2023 was 2.64. The higher the ratio, the stronger the company's financial strength is.

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

R' s Interest Coverage Range Over the Past 10 Years
Min: 0.89   Med: 3.17   Max: 4.28
Current: 2.97


R's Interest Coverage is ranked worse than
80.38% of 790 companies
in the Business Services industry
Industry Median: 13.395 vs R: 2.97

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


Ryder System Interest Coverage Historical Data

The historical data trend for Ryder System'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.

* Premium members only.

Ryder System Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.41 0.89 2.87 4.28 2.97

Ryder System 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 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 3.75 2.45 3.43 3.33 2.64

Competitive Comparison

For the Rental & Leasing Services subindustry, Ryder System'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.


Ryder System Interest Coverage Distribution

For the Business Services industry and Industrials sector, Ryder System's Interest Coverage distribution charts can be found below:

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



Ryder System 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.

Ryder System'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, Ryder System's Interest Expense was $-296 Mil. Its Operating Income was $878 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,331 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*878/-296
=2.97

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

Here, for the three months ended in Dec. 2023, Ryder System's Interest Expense was $-84 Mil. Its Operating Income was $222 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,331 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*222/-84
=2.64

* 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.


Ryder System  (NYSE:R) 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 .


Ryder System Interest Coverage Related Terms

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


Ryder System (Ryder System) Business Description

Traded in Other Exchanges
N/A
Address
11690 N.W. 105th Street, Miami, FL, USA, 33178
Ryder System Inc operates in three business segments: (1) Fleet Management Solutions which provides full-service leasing and leasing with flexible maintenance options, commercial rental and maintenance services of trucks, tractors and trailers to customers; (2) Supply Chain Solutions (SCS), which provides integrated logistics solutions, including distribution management, dedicated transportation, transportation management, brokerage, e-commerce, last mile, and professional services; and (3) Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the U.S., including dedicated vehicles, professional drivers, management, and administrative support.
Executives
Robert D Fatovic officer: EVP, CLO & Corp. Secretary 11690 N.W. 105TH STREET, MIAMI FL 33178
Thomas M. Havens officer: President, Global FMS 11690 N.W. 105TH STREET, MIAMI FL 33178
Karen M. Jones officer: EVP & Chief Marketing Officer 11690 N.W. 105TH STREET, MIAMI FL 33178
John S. Sensing officer: President, Global Supply Chain 11690 N.W. 105TH STREET, MIAMI FL 33178
Robert E Sanchez director, officer: Chair and CEO 11690 N.W. 105TH STREET, MIAMI FL 33178
John J. Diez officer: President, Ryder Dedicated 11690 N.W. 105TH STREET, MIAMI FL 33178
Francisco Jr. Lopez officer: SVP & Chief HR Officer 11690 N.W. 105TH STREET, MIAMI FL 33178
Nieto Luis P Jr director 11690 N.W. 105TH STREET, MIAMI FL 33178
E Follin Smith director C/O CONSTELLATION ENERGY GROUP INC, 250 W. PRATT ST., BALTIMORE MD 21201
Sanford J. Hodes officer: SVP, Chief Procurement Officer 11690 NW 105 STREET, MIAMI FL 33178
Rajeev Ravindran officer: SVP & CIO 11690 N.W. 105TH STREET, MIAMI FL 33178
Charles M Swoboda director C/O CREE, INC., 4600 SILICON DRIVE, DURHAM NC 27703
Cristina Gallo-aquino officer: SVP and Controller 11690 N.W. 105TH STREET, MIAMI FL 33178
Scott T Parker officer: EVP & CFO C/O RYDER SYSTEM, INC., 11690 N.W. 105TH STREET, MIAMI FL 33178
John J Gleason officer: EVP Chief Sales Officer 11690 N.W. 105TH STREET, MIAMI FL 33178