Huntington Ingalls Industries Inc (HII)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 738,000 | 937,000 | 1,013,000 | 966,000 | 948,000 | 773,000 | 751,000 | 806,000 | 821,000 | 812,000 | 788,000 | 719,000 | 711,000 | 887,000 | 975,000 | 886,000 | 924,000 | 765,000 | 728,000 | 820,000 |
| Interest expense (ttm) | US$ in thousands | 95,000 | 93,000 | 92,000 | 92,000 | 95,000 | 93,000 | 98,000 | 100,000 | 102,000 | 105,000 | 102,000 | 94,000 | 89,000 | 109,000 | 112,000 | 119,000 | 114,000 | 86,000 | 77,000 | 70,000 |
| Interest coverage | 7.77 | 10.08 | 11.01 | 10.50 | 9.98 | 8.31 | 7.66 | 8.06 | 8.05 | 7.73 | 7.73 | 7.65 | 7.99 | 8.14 | 8.71 | 7.45 | 8.11 | 8.90 | 9.45 | 11.71 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $738,000K ÷ $95,000K
= 7.77
Huntington Ingalls Industries Inc's interest coverage ratio has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.
The interest coverage ratio declined from 11.71 on March 31, 2020, to 7.45 on March 31, 2021, indicating a decrease in the company's ability to cover its interest expenses with its operating income. However, the ratio improved slightly to 8.71 on June 30, 2021, before declining again to 7.65 on March 31, 2022.
Subsequently, the interest coverage ratio remained relatively stable around 7.73 to 8.31 from June 30, 2022, to September 30, 2023. There was a significant improvement in the ratio to 9.98 on December 31, 2023, and further increased to 11.01 on June 30, 2024. However, the ratio decreased again to 7.77 on December 31, 2024.
Overall, the trend in Huntington Ingalls Industries Inc's interest coverage ratio shows some variability, with periods of improvement and decline. It would be essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its interest obligations in the future.
Peer comparison
Dec 31, 2024