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REZI (Resideo Technologies) Interest Coverage : 5.60 (As of Mar. 2025)


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What is Resideo Technologies 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. Resideo Technologies's Operating Income for the three months ended in Mar. 2025 was $140 Mil. Resideo Technologies's Interest Expense for the three months ended in Mar. 2025 was $-25 Mil. Resideo Technologies's interest coverage for the quarter that ended in Mar. 2025 was 5.60. The higher the ratio, the stronger the company's financial strength is.

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

REZI' s Interest Coverage Range Over the Past 10 Years
Min: 3.74   Med: 10.48   Max: No Debt
Current: 6.2


REZI's Interest Coverage is ranked worse than
51.45% of 138 companies
in the Industrial Distribution industry
Industry Median: 6.56 vs REZI: 6.20

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


Resideo Technologies Interest Coverage Historical Data

The historical data trend for Resideo Technologies'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.

Resideo Technologies Interest Coverage Chart

Resideo Technologies Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.94 11.89 11.96 9.06 7.06

Resideo Technologies Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 10.38 8.87 5.74 5.73 5.60

Competitive Comparison of Resideo Technologies's Interest Coverage

For the Industrial Distribution subindustry, Resideo Technologies'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.


Resideo Technologies's Interest Coverage Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Resideo Technologies's Interest Coverage distribution charts can be found below:

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


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Resideo Technologies 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.

Resideo Technologies's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Resideo Technologies's Interest Expense was $-81 Mil. Its Operating Income was $572 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,983 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*572/-81
=7.06

Resideo Technologies's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Resideo Technologies's Interest Expense was $-25 Mil. Its Operating Income was $140 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,983 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*140/-25
=5.60

* 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.


Resideo Technologies  (NYSE:REZI) 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 .


Resideo Technologies Interest Coverage Related Terms

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


Resideo Technologies Business Description

Traded in Other Exchanges
Address
16100 North 71st Street, Suite 550, Scottsdale, AZ, USA, 85254
Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions; and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives majority of its revenue from the United States.
Executives
Andrew C Teich director 3 HANSON DRIVE, MOULTONBOROUGH NH 03254
Robert B Aarnes officer: PRESIDENT, ADI 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Jeannine J Lane officer: See Remarks 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Jay L Geldmacher director, officer: President and CEO 5810 VAN ALLEN WAY, CARLSBAD CA 92008
Stephen Montgomery Kelly officer: See Remarks 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Tina M Beskid officer: Chief Accounting Officer 1835 DUEBER AVENUE, S.W., CANTON OH 44706
Jack R Lazar director 400 W. CESAR CHAVEZ, ATTN: STOCK ADMINISTRATION, AUSTIN TX 78701
Nina Richardson director C/O SILICON LABORATORIES, 400 W CESAR CHAVEZ, AUSTIN TX 78701
Phillip L. Theodore officer: Pres., Products & Solutions 901 E. 6TH STREET, AUSTIN TX 78701
Dana Edward Huth officer: EVP, Chief Revenue Officer 1595 WYNKOOP STREET, SUITE 800, DENVER CO 80202
Anthony L Trunzo officer: EVP, Chief Financial Officer 27700 SW PARKWAY AVENUE, WILSONVILLE OR 97070
Kareem Yusuf director 901 E. 6TH STREET, AUSTIN TX 78701
Travis D Merrill officer: EVP, Chief Strat & Cml Officer 27700 SW PARKWAY AVE., WILSONVILLE OR 97070
Roger Fradin director C/O MSC INDUSTRIAL DIRECT CO., INC., 75 MAXESS ROAD, MELVILLE NY 11747
Paul F Deninger director C/O JEFFERIES & CO., 1050 WINTER STREET, WALTHAM MA 02451