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TE Connectivity Interest Coverage

: 50.43 (As of Sep. 2021)
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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. TE Connectivity's Operating Income for the three months ended in Sep. 2021 was $706 Mil. TE Connectivity's Interest Expense for the three months ended in Sep. 2021 was $-14 Mil. TE Connectivity's interest coverage for the quarter that ended in Sep. 2021 was 50.43. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:TEL' s Interest Coverage Range Over the Past 10 Years
Min: 9.51   Med: 15.11   Max: 48.18
Current: 48.18

9.51
48.18

NYSE:TEL's Interest Coverage is ranked higher than
65% of the 1643 Companies
in the Hardware industry.

( Industry Median: 22.69 vs. NYSE:TEL: 48.18 )

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


TE Connectivity Interest Coverage Historical Data

The historical data trend for TE Connectivity'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.

* Premium members only.

TE Connectivity Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.61 23.09 33.24 36.04 48.18

TE Connectivity Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 39.08 41.53 48.85 52.43 50.43

Competitive Comparison

For the Electronic Components subindustry, TE Connectivity'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.

   

TE Connectivity Interest Coverage Distribution

For the Hardware industry and Technology sector, TE Connectivity's Interest Coverage distribution charts can be found below:

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



TE Connectivity 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.


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

TE Connectivity's Interest Coverage for the fiscal year that ended in Sep. 2021 is calculated as

Here, for the fiscal year that ended in Sep. 2021, TE Connectivity's Interest Expense was $-56 Mil. Its Operating Income was $2,698 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,589 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2021 )/Interest Expense (A: Sep. 2021 )
=-1*2698/-56
=48.18

TE Connectivity's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, TE Connectivity's Interest Expense was $-14 Mil. Its Operating Income was $706 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,589 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*706/-14
=50.43

* 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.


TE Connectivity  (NYSE:TEL) 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 .


TE Connectivity Interest Coverage Related Terms

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


TE Connectivity Business Description

TE Connectivity logo
Industry
Technology » Hardware NAICS : 334419 SIC : 3679
Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Stucki Aaron Kyle officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE BERWYN PA 19312
Jenkins John S officer: EVP & General Counsel 1050 WESTLAKES DRIVE BERWYN PA 19312
Mitts Heath A officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT SUITE 200 LAKE FOREST IL 60045
Rock Kevin N officer: President, Industrial Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Calastri Mario officer: SVP & Treasurer C/O TYCO ELECTRONICS LTD. 1050 WESTLAKES DRIVE BERWYN PA 19312
Resch Eric officer: Sr VP & Chief Tax Officer C/O TYCO ELECTRONICS LTD. 1050 WESTLAKES DRIVE BERWYN PA 19312
Phelan Daniel J director C/O TYCO ELECTRONICS LTD. 1050 WESTLAKES DRIVE BERWYN PA 19312
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Willoughby Dawn C director 1221 BROADWAY OAKLAND CA 94612
Merkt Steven T officer: President, Transportation Sol. 1050 WESTLAKES DRIVE BERWYN PA 19312
Lynch Thomas J director 1303 E ALGONQUIN RD SCHAUMBURG IL 60196
Curtin Terrence R director, officer: Chief Exec. Officer & Director C/O TYCO ELECTRONICS LTD. 1050 WESTLAKES DRIVE BERWYN PA 19312
Kroeger Shadrak W officer: Pres., Communications Solution 1050 WESTLAKES DRIVE BERWYN PA 19312
Murphy Tim officer: SVP & CHRO 1050 WESTLAKES DRIVE BERWYN PA 19312
Ott Robert J officer: Sr VP & Corporate Controller C/O TYCO ELECTRONICS LTD 1050 WESTLAKES DRIVE BERWYN PA 19312

TE Connectivity Headlines

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