Huntington Ingalls Industries Inc (HII)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 738,000 | 948,000 | 821,000 | 711,000 | 924,000 |
| Interest expense | US$ in thousands | 95,000 | 95,000 | 102,000 | 89,000 | 114,000 |
| Interest coverage | 7.77 | 9.98 | 8.05 | 7.99 | 8.11 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $738,000K ÷ $95,000K
= 7.77
Huntington Ingalls Industries Inc's interest coverage ratio has shown relative stability over the past five years. The ratio, calculated as earnings before interest and taxes (EBIT) divided by interest expense, was around 8 times from 2020 to 2022, indicating the company's ability to cover its interest obligations comfortably.
In 2023, the interest coverage ratio improved significantly to approximately 10 times, suggesting a stronger ability to meet interest payments from operating profits. However, in 2024, the ratio decreased slightly to 7.77 times, potentially indicating a slight decrease in earnings relative to interest expenses.
Overall, Huntington Ingalls Industries Inc's interest coverage ratios generally indicate a healthy financial position with the ability to comfortably meet its interest obligations, although fluctuations in the ratio over time may warrant further investigation into the company's financial performance and capital structure.
Peer comparison
Dec 31, 2024