Spirit AeroSystems Holdings (Spirit AeroSystems Holdings) Interest Coverage

: 2.18 (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. Spirit AeroSystems Holdings's Operating Income for the three months ended in Dec. 2023 was $213 Mil. Spirit AeroSystems Holdings's Interest Expense for the three months ended in Dec. 2023 was $-98 Mil. Spirit AeroSystems Holdings's interest coverage for the quarter that ended in Dec. 2023 was 2.18. The higher the ratio, the stronger the company's financial strength is.

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

SPR's Interest Coverage is not ranked ^*
in the Aerospace & Defense industry.
Industry Median: 6.915
* Ranked among companies with meaningful Interest Coverage only.

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

Spirit AeroSystems Holdings Interest Coverage Historical Data

The historical data trend for Spirit AeroSystems Holdings'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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Spirit AeroSystems Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

8.28

Spirit AeroSystems Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	-	-	-	2.18

Competitive Comparison

For the Aerospace & Defense subindustry, Spirit AeroSystems Holdings'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.

Spirit AeroSystems Holdings Interest Coverage Distribution

For the Aerospace & Defense industry and Industrials sector, Spirit AeroSystems Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Spirit AeroSystems Holdings's Interest Coverage falls into.

Spirit AeroSystems Holdings 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.

Spirit AeroSystems Holdings'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, Spirit AeroSystems Holdings's Interest Expense was $-319 Mil. Its Operating Income was $-165 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,103 Mil.

Spirit AeroSystems Holdings did not have earnings to cover the interest expense.

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

Here, for the three months ended in Dec. 2023, Spirit AeroSystems Holdings's Interest Expense was $-98 Mil. Its Operating Income was $213 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,103 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	213.2	/	-97.6
	=	2.18

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

Spirit AeroSystems Holdings (NYSE:SPR) 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 .

Spirit AeroSystems Holdings Interest Coverage Related Terms

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Spirit AeroSystems Holdings (Spirit AeroSystems Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Spirit AeroSystems Holdings Inc (NYSE:SPR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

S9Q:Germany

Address

3801 South Oliver Street, Wichita, KS, USA, 67210

Website

https://www.spiritaero.com

Spirit AeroSystems manufactures aerostructures, particularly fuselages, cockpits, wing sections, engine pylons, and nacelles for commercial and military aircraft. The company was spun out of Boeing in 2005, and the firm is the largest independent supplier of aerostructures for commercial aircraft. Boeing and Airbus are the firm's primary customers—Boeing represented roughly 60% and Airbus roughly 20% of revenue in recent years. The company is highly exposed to Boeing's 737 program, which accounts for nearly half the company's revenue.

Executives

Alan W Young	officer: SVP Fab & Procurement Officer	3801 S. OLIVER, MC K11-60, WICHITA KS 67210
Sean Black	officer: SVP, Engineering	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Mindy Mcpheeters	officer: SVP, GC/Corp Sec	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Justin Welner	officer: SVP, CAO & CCO	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Mark Miklos	officer: SVP, Defense & Space	3801 S. OLIVER, MC K11-60, WICHITA KS 67210
Kailash Krishnaswamy	officer: SVP, Aftermarket	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Robert D Johnson	director	HONEYWELL, 1944 E SKY HARBOR CIRCLE, PHOENIX AZ 85034
Ray James R Jr	director	COMMERCIAL VEHICLE GROUP, INC., 7800 WALTON PARKWAY, NEW ALBANY OH 43054
Fitzgerald William Augustus Iii	director	3801 S OLIVER, MC K11-60, WICHITA KS 67210
Patrick M Shanahan	director	C/O RESILIENCE CAPITAL PARTNERS LLC, 25101 CHAGRIN BLVD 350, BEACHWOOD OH 44122
Terry J George	officer: SVP, Boeing 737 Program	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Damon Christopher Ward	officer: Interim Corporate Controller	3801 S OLIVER ST, MAIL CODE K11-60, WICHITA KS 67210
Stephen Anthony Cambone	director	3801 S OLIVER ST, MC K11-60, WICHITA KS 67210
Mcmullen Victor Rodney Jr	officer: SVP, Wichita & Oklahoma Ops	3801 S OLIVER ST, MAIL CODE K11-60, WICHITA KS 67210
Scott Mclarty	officer: SVP, Airbus Programs	3801 S OLIVER ST, MAIL CODE K11-60, WICHITA KS 67210