Huntington Ingalls Industries Inc (HII)
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 | 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 | 753,000 | 796,000 | 889,000 | 984,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 70,000 | 66,000 | 62,000 | 59,000 |
| Interest coverage | 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 | 10.76 | 12.06 | 14.34 | 16.68 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $948,000K ÷ $95,000K
= 9.98
Huntington Ingalls Industries Inc has exhibited consistent interest coverage ratios over the past eight quarters. The interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, has ranged between 5.35 and 6.96 during this period.
The average interest coverage ratio for the past eight quarters is approximately 5.81, indicating that the company has on average generated operating income nearly 5.81 times greater than its interest expenses. This demonstrates that Huntington Ingalls Industries Inc has a healthy ability to meet its interest obligations through its operating earnings.
The consistent and relatively high interest coverage ratios suggest that the company has a strong financial position and cash flow stability to comfortably meet its interest payments. Investors and creditors may view this positively as it indicates a lower risk of default on debt obligations.
Overall, Huntington Ingalls Industries Inc's interest coverage ratios reflect a stable and sustainable financial performance, which is essential for long-term growth and value creation for its stakeholders.
Peer comparison
Dec 31, 2023