GE Aerospace (GE)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 37,160,000 | 38,452,000 | 38,164,000 | 38,870,000 | 36,525,000 | 36,171,000 | 22,750,000 | 8,843,000 | -378,000 | -1,080,000 | -2,893,000 | -8,282,000 | -7,975,000 | -14,878,000 | -14,525,000 | -10,772,000 | -10,684,000 | 10,368,000 | -10,599,000 | 14,434,000 |
| Interest expense (ttm) | US$ in thousands | 1,118,000 | 1,122,000 | 1,226,000 | 1,353,000 | 1,622,000 | 1,748,000 | 1,820,000 | 1,914,000 | 1,876,000 | 2,187,000 | 2,470,000 | 2,979,000 | 3,273,000 | 3,491,000 | 4,025,000 | 4,019,000 | 4,358,000 | 4,655,000 | 4,603,000 | 4,907,000 |
| Interest coverage | 33.24 | 34.27 | 31.13 | 28.73 | 22.52 | 20.69 | 12.50 | 4.62 | -0.20 | -0.49 | -1.17 | -2.78 | -2.44 | -4.26 | -3.61 | -2.68 | -2.45 | 2.23 | -2.30 | 2.94 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $37,160,000K ÷ $1,118,000K
= 33.24
General Electric Co.'s interest coverage ratio has shown a fluctuating trend over the past eight quarters. The company's ability to cover interest expenses improved consistently from Q1 2022 to Q4 2023. The ratio increased from 1.08 times in Q1 2022 to 3.63 times in Q4 2023, indicating that the company's earnings before interest and taxes (EBIT) could cover its interest expenses more than three times in the most recent quarter.
This improvement in interest coverage suggests that General Electric Co. has been generating sufficient operating income to meet its interest obligations. However, it is important to note that although the ratio has been trending upwards, there was some volatility in the interim quarters, with a decrease from Q4 2022 to Q1 2023 followed by a subsequent increase in the following quarters.
Overall, the upward trend in the interest coverage ratio is a positive sign, indicating a strengthening ability of General Electric Co. to meet its interest payments. However, continued monitoring of this ratio is recommended to ensure the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023