L3Harris Technologies Inc (LHX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,426,000 | 1,826,000 | 2,774,000 | 1,623,000 | 1,278,000 |
| Interest expense | US$ in thousands | 543,000 | 279,000 | 265,000 | 270,000 | 169,000 |
| Interest coverage | 2.63 | 6.54 | 10.47 | 6.01 | 7.56 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,426,000K ÷ $543,000K
= 2.63
The interest coverage ratio for L3Harris Technologies Inc was not provided for the years ending December 31, 2021, 2022, and 2023. However, for the periods ending December 31, 2020, and June 30, 2019, the interest coverage ratios were 6.01 and 7.56, respectively.
A higher interest coverage ratio indicates that the company is more capable of covering its interest obligations with its earnings. In this case, the decreasing trend in the interest coverage ratio from 2019 to 2020 may indicate that the company's ability to cover its interest expenses relative to its earnings has slightly decreased.
Without the data for the years 2021, 2022, and 2023, it is difficult to provide a more detailed analysis of the trend in the interest coverage ratio. Further information for the missing years would be necessary to assess the company's overall ability to meet its interest payments over time.
Peer comparison
Dec 31, 2023