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. US Airways Group's
Operating Income
for the
three
months ended in Sep. 2013 was €320 Mil. US Airways Group's Interest Expense for the
three
months ended in Sep. 2013 was €-66 Mil.
US Airways Group's interest coverage for the quarter that ended in Sep. 2013 was 4.86.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for US Airways Group's Interest Coverage or its related term are showing as below:
FRA:USG1'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 3.5
Current: 3.5
FRA:USG1's Interest Coverage is not ranked
in the Transportation industry.
Industry Median: 5.5
vs FRA:USG1: 3.50
US Airways Group Interest Coverage Historical Data
The historical data trend for US Airways Group'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.
Competitive Comparison of US Airways Group's Interest Coverage
For the Airlines subindustry, US Airways Group'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.
US Airways Group's Interest Coverage Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, US Airways Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where US Airways Group's Interest Coverage falls into.
US Airways Group 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:
* 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.
US Airways Group (FRA:USG1) 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 .
US Airways Group Interest Coverage Related Terms
Thank you for viewing the detailed overview of US Airways Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
US Airways Group Inc., a Delaware corporation, is a holding company formed in 1982. The Company's main business activity is the operation of a major network air carrier through its wholly owned subsidiaries US Airways, Piedmont Airlines, Inc., PSA Airlines, Inc., Material Services Company, Inc. and Airways Assurance Limited. MSC and AAL operate in support of its airline subsidiaries in areas such as the procurement of aviation fuel and insurance. The Company operates the airline in the United States as measured by domestic revenue passenger miles and available seat miles. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport. It offers scheduled passenger service on more than 3,000 flights daily to 198 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an established East Coast route network, including the US Airways Shuttle service. As of December 31, 2012, it operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 238 regional jets and 44 turboprops. Its prorate carriers operated four regional jets at December 31, 2012. The Company's main competitors include Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit. The airline industry is also subject to increasingly stringent federal, state and local laws aimed at protecting the environment.
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