Textron (Textron) Interest Coverage : 16.58 (As of Dec. 2023)

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What is Textron 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. Textron's Operating Income for the three months ended in Dec. 2023 was $315 Mil. Textron's Interest Expense for the three months ended in Dec. 2023 was $-19 Mil. Textron's interest coverage for the quarter that ended in Dec. 2023 was 16.58. The higher the ratio, the stronger the company's financial strength is.

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

TXT' s Interest Coverage Range Over the Past 10 Years
Min: 3.08 Med: 6.4 Max: 13.68
Current: 13.68

TXT's Interest Coverage is ranked better than
69.3% of 215 companies
in the Aerospace & Defense industry
Industry Median: 7 vs TXT: 13.68

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

Textron Interest Coverage Historical Data

The historical data trend for Textron'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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Textron Interest Coverage Chart

Textron Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

6.27

3.08

6.08

8.25

13.68

Textron 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															10.85	9.40	15.21	13.74	16.58

Competitive Comparison of Textron's Interest Coverage

For the Aerospace & Defense subindustry, Textron'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.

Textron's Interest Coverage Distribution in the Aerospace & Defense Industry

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

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

Textron 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.

Textron'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, Textron's Interest Expense was $-77 Mil. Its Operating Income was $1,053 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,517 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1053	/	-77
	=	13.68

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

Here, for the three months ended in Dec. 2023, Textron's Interest Expense was $-19 Mil. Its Operating Income was $315 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,517 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	315	/	-19
	=	16.58

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

Textron (NYSE:TXT) 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 .

Textron Interest Coverage Related Terms

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

Textron (Textron) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Textron Inc (NYSE:TXT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TXT:Germany TXT:Germany

Address

40 Westminster Street, Providence, RI, USA, 02903

Website

https://www.textron.com

Textron is a conglomerate that mostly designs, manufactures, and services a range of specialty aircraft including small jets, propeller-driven airplanes, helicopters, and tilt-rotor aircraft. The firm's aviation segment manufactures and services Cessna and Beechcraft planes. Bell is a helicopter and tilt-rotor manufacturer and servicer for both commercial and military customers. Textron Systems produces uncrewed aircraft and armored vehicles for the military market as well as aircraft simulators and training for the commercial and military markets. Textron Industrial contains the Kautex business that manufactures plastic fuel tanks for conventional and hybrid motor vehicles and other subsidiaries that produce specialized vehicles such as golf carts, snowmobiles, and all-terrain vehicles.

Executives

R Kerry Clark	director	C/O THE PROCTER & GAMBLE COMPANY, ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Michael X Garrett	director	6521 CHIPSTEAD LANE, CHARLOTTE NC 28277
Frank T Connor	officer: Executive VP and CFO	40 WESTMINSTER STREET, PROVIDENCE RI 02903
Scott C Donnelly	officer: Executive VP and COO
Thomas A Kennedy	director	870 WINTER STREET, WALTHAM MA 02451
Richard F Ambrose	director	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Mark S Bamford	officer: VP and Corporate Controller	40 WESTMINSTER STREET, PROVIDENCE RI 02903
E Robert Lupone	officer: EVP, General Counsel and Secy	40 WESTMINSTER STREET, PROVIDENCE RI 02903
Kathleen M Bader	director	2030 DOW CENTER, MIDLAND MI 49640
Nowell Lionel L Iii	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Julie G Duffy	officer: Executive VP - Human Resources	40 WESTMINSTER STREET, PROVIDENCE RI 02903
Deborah L James	director	1710 SAIC DRIVE, MCLEAN VA 22102
Ralph D Heath	director	6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Maria T Zuber	director	40 WESTMINSTER STREET, PROVIDENCE RI 02903
Cheryl H Johnson	officer: Executive VP, Human Resources	40 WESTMINSTER STREET, PROVIDENCE RI 02903