Precision Castparts (Precision Castparts) Interest Coverage : 16.61 (As of Sep. 2015)

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What is Precision Castparts 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. Precision Castparts's Operating Income for the three months ended in Sep. 2015 was $548 Mil. Precision Castparts's Interest Expense for the three months ended in Sep. 2015 was $-33 Mil. Precision Castparts's interest coverage for the quarter that ended in Sep. 2015 was 16.61. The higher the ratio, the stronger the company's financial strength is.

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

PCP's Interest Coverage is not ranked ^*
in the Industrial Products industry.
Industry Median: 13.79
* 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.

Precision Castparts Interest Coverage Historical Data

The historical data trend for Precision Castparts'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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Precision Castparts Interest Coverage Chart

Precision Castparts Annual Data

Trend

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Interest Coverage

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110.56

141.46

56.76

34.99

37.86

Precision Castparts Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Interest Coverage	Get a 7-Day Free Trial															41.53	39.41	27.78	30.95	16.61

Competitive Comparison of Precision Castparts's Interest Coverage

For the Metal Fabrication subindustry, Precision Castparts'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.

Precision Castparts's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Precision Castparts's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Precision Castparts's Interest Coverage falls into.

Precision Castparts 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.

Precision Castparts's Interest Coverage for the fiscal year that ended in Mar. 2015 is calculated as

Here, for the fiscal year that ended in Mar. 2015, Precision Castparts's Interest Expense was $-69 Mil. Its Operating Income was $2,612 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,493 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2015 )	/	Interest Expense (A: Mar. 2015 )
	=	-1	*	2612	/	-69
	=	37.86

Precision Castparts's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Here, for the three months ended in Sep. 2015, Precision Castparts's Interest Expense was $-33 Mil. Its Operating Income was $548 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,491 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2015 )	/	Interest Expense (Q: Sep. 2015 )
	=	-1	*	548	/	-33
	=	16.61

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

Precision Castparts (NYSE:PCP) 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 .

Precision Castparts Interest Coverage Related Terms

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

Precision Castparts (Precision Castparts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Precision Castparts Corp (NYSE:PCP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.precast.com

Precision Castparts Corp was incorporated in the State of Oregon. The Company is a manufacturer of complex metal components and products provides high-quality investment castings, forgings and fasteners/fastener systems for critical aerospace and power applications. It also provides investment castings and forgings for general industrial, armament, medical and other applications; nickel alloys and mill forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; seamless pipe for coal-fired, industrial gas turbine, and nuclear power plants, as well as oil and gas applications; fasteners for automotive and general industrial markets; specialty alloys for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; metal-injection-molded and ThixoFormedparts for automotive and other markets; grinder pumps and affiliated components for low pressure sewer systems; critical auxiliary equipment and gas monitoring systems for the power generation industry; and metalworking tools for the fastener market and other applications. It manufactures complex metal components and products in three main business segments: Investment Cast Products, Forged Products and Fastener Products. The Company's Investment Cast Products segment manufactures investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament, unmanned aerial vehicles and other industrial applications. The segment also provides alloys to PCC's investment casting operations, as well as to other investment casting companies. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. The Company's main competitors are Ladish Co., a subsidiary of Allegheny Technologies, Inc., Fortech, S.A. and Thyssen AG for aerospace turbine products, Alcoa Inc. and Firth Rixson Limited for aerospace structural products, Vallourec & Mannesmann Tubes and Sumitomo Corporation for energy products and Allegheny Technologies, Inc., Carpenter Technology Corporation, Haynes International, Inc., an

Executives

Ulrich Schmidt	director	PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Richard L Wambold	director	C/O PACTIV CORP, 1900 W FIELD COURT, LAKE FOREST IL 60045
Lester L Lyles	director	C/O MTC TECHNOLOGIES INC, 4032 LINDEN AVENUE, DAYTON OH 45432
Timothy A Wicks	director	C/O PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Andrew Masterman	officer: EVP, Pres. Wyman-Gordon	401 PLYMOUTH ROAD, SUITE 500, PLYMOUTH MEETING PA 19462-1646
Kevin M Stein	officer: Exec VP	TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Steven G Rothmeier	director	C/O E.W BLANCH HOLDINGS INC, 500 N. AKARD #4500, DALLAS TX 75201
Russell S Pattee	officer: VP and Corporate Controller	PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Chris Ayers	officer: Exec. VP, Pres. PCC Forgings	4650 S.W. MACADAM, SUITE #440, PORTLAND OR 97239
William D Larsson	officer: Sr. VP and CFO	35 SHARPS CIRCLE, RENO NV 89519
Byron O Pond	director	C/O GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730-1409
Wayne F Robbins	officer: President; PCC Flow Technologi	4650 SW MACADAM, STE 440, PORTLAND OR 97239