GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Atmus Filtration Technologies Inc (NYSE:ATMU) » Definitions » Interest Coverage

Atmus Filtration Technologies (Atmus Filtration Technologies) Interest Coverage : 5.54 (As of Mar. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Atmus Filtration Technologies Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Atmus Filtration Technologies's Operating Income for the three months ended in Mar. 2024 was $58 Mil. Atmus Filtration Technologies's Interest Expense for the three months ended in Mar. 2024 was $-11 Mil. Atmus Filtration Technologies's interest coverage for the quarter that ended in Mar. 2024 was 5.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Atmus Filtration Technologies's Interest Coverage or its related term are showing as below:

ATMU' s Interest Coverage Range Over the Past 10 Years
Min: 5.85   Med: 238.84   Max: 395.75
Current: 5.85

ATMU's Interest Coverage is ranked worse than
69.24% of 2292 companies
in the Industrial Products industry
Industry Median: 13.71 vs ATMU: 5.85

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Atmus Filtration Technologies Interest Coverage Historical Data

The historical data trend for Atmus Filtration Technologies's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Atmus Filtration Technologies Interest Coverage Chart

Atmus Filtration Technologies Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Interest Coverage
395.75 226.38 251.29 8.33

Atmus Filtration Technologies Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only N/A 13.31 4.61 4.47 5.54

Competitive Comparison of Atmus Filtration Technologies's Interest Coverage

For the Pollution & Treatment Controls subindustry, Atmus Filtration Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Atmus Filtration Technologies's Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Atmus Filtration Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Atmus Filtration Technologies's Interest Coverage falls into.


Atmus Filtration Technologies Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Atmus Filtration Technologies's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Atmus Filtration Technologies's Interest Expense was $-26 Mil. Its Operating Income was $215 Mil. And its Long-Term Debt & Capital Lease Obligation was $611 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*214.8/-25.8
=8.33

Atmus Filtration Technologies's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Atmus Filtration Technologies's Interest Expense was $-11 Mil. Its Operating Income was $58 Mil. And its Long-Term Debt & Capital Lease Obligation was $610 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*58.2/-10.5
=5.54

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Atmus Filtration Technologies  (NYSE:ATMU) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Atmus Filtration Technologies Interest Coverage Related Terms

Thank you for viewing the detailed overview of Atmus Filtration Technologies's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Atmus Filtration Technologies (Atmus Filtration Technologies) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Atmus Filtration Technologies Inc (NYSE:ATMU) » Definitions » Interest Coverage
Comparable Companies
ERII PCT CECO SCWO SPEC ADES BNET MEEC CLIR FTEK VLTO XBRU:UMI ZWS FSS TSE:6370 SZSE:300390 OSTO:MTRS SHSE:600388 SHSE:603279 TSE:6368
Traded in Other Exchanges
N/A
Address
26 Century Boulevard, Nashville, TN, USA, 37214
Website
https://www.cumminsfiltration.com
Atmus Filtration Technologies Inc manufactures filtration products for on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. It designs and manufactures advanced filtration products, principally under the Fleetguard brand, that enable lower emissions and provide asset protection. It designs, manufactures, and sells filters, coolants, and chemical products. Atmus offers products for first-fit and aftermarket applications including air filters, fuel filters, fuel water separators, lube filters, hydraulic filters, coolants, fuel additives, and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users.
Executives
Stephen E. Macadam director C/O ENPRO INDUSTRIES, INC., 5605 CARNEGIE BLVD., STE. 500, CHARLOTTE NC 28209
Renee Swan officer: Chief People Officer 26 CENTURY BOULEVARD, ONE CENTURY PLACE, SUITE 500, NASHVILLE TN 37214
Cummins Inc 10 percent owner BOX 3005 MAIL CODE 60207, 500, COLUMBUS IN 47202-3005
Nathan R Stoner director 500 JACKSON STREET, COLUMBUS IN 47201
Gretchen R Haggerty director
Jane A Leipold director C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Andrew Smith director 500 JACKSON STREET, COLUMBUS IN 47201
Earl Newsome director 505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
Tony Satterthwaite director 1400 73RD AVENUE NE, MINNEAPOLIS MN 55432
Mark Osowick officer: Chief Human Resources Officer 26 CENTURY BOULEVARD, NASHVILLE TN 37214
Steph Disher director, officer: Chief Executive Officer 26 CENTURY BOULEVARD, NASHVILLE TN 37214
Toni Hickey officer: Chief Legal Officer 26 CENTURY BOULEVARD, NASHVILLE TN 37214
Cristina Burrola director 26 CENTURY BOULEVARD, NASHVILLE TN 37214
Charles Masters officer: VP, Engine Products 26 CENTURY BOULEVARD, NASHVILLE TN 37214
Roy Edwin Bennett director 26 CENTURY BOULEVARD, NASHVILLE TN 37214