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KEYS (Keysight Technologies) Interest Coverage : 9.76 (As of Jul. 2024)


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What is Keysight 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. Keysight Technologies's Operating Income for the three months ended in Jul. 2024 was $205 Mil. Keysight Technologies's Interest Expense for the three months ended in Jul. 2024 was $-21 Mil. Keysight Technologies's interest coverage for the quarter that ended in Jul. 2024 was 9.76. The higher the ratio, the stronger the company's financial strength is.

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

KEYS' s Interest Coverage Range Over the Past 10 Years
Min: 1.85   Med: 9.59   Max: 156.33
Current: 11.36


KEYS's Interest Coverage is ranked worse than
52.6% of 1595 companies
in the Hardware industry
Industry Median: 12.77 vs KEYS: 11.36

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


Keysight Technologies Interest Coverage Historical Data

The historical data trend for Keysight 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.

Keysight Technologies Interest Coverage Chart

Keysight Technologies Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.89 9.81 13.67 16.89 17.41

Keysight Technologies Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.21 15.85 11.05 8.85 9.76

Competitive Comparison of Keysight Technologies's Interest Coverage

For the Scientific & Technical Instruments subindustry, Keysight 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.


Keysight Technologies's Interest Coverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Keysight Technologies's Interest Coverage distribution charts can be found below:

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



Keysight 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.

Keysight Technologies's Interest Coverage for the fiscal year that ended in Oct. 2023 is calculated as

Here, for the fiscal year that ended in Oct. 2023, Keysight Technologies's Interest Expense was $-78 Mil. Its Operating Income was $1,358 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,387 Mil.

Interest Coverage=-1* Operating Income (A: Oct. 2023 )/Interest Expense (A: Oct. 2023 )
=-1*1358/-78
=17.41

Keysight Technologies's Interest Coverage for the quarter that ended in Jul. 2024 is calculated as

Here, for the three months ended in Jul. 2024, Keysight Technologies's Interest Expense was $-21 Mil. Its Operating Income was $205 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,393 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2024 )/Interest Expense (Q: Jul. 2024 )
=-1*205/-21
=9.76

* 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.


Keysight Technologies  (NYSE:KEYS) 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 .


Keysight Technologies Interest Coverage Related Terms

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


Keysight Technologies Business Description

Address
1400 Fountaingrove Parkway, Santa Rosa, CA, USA, 95403-1738
Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
Executives
Richard P Hamada director 2211 S 47TH ST, PHOENIX AZ 85034
Lisa M. Poole officer: VP and Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Kevin A Stephens director 1220 AUGUSTA DRIVE, SUITE 600, HOUSTON TX 77057
Kailash Narayanan officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Ronald S. Nersesian director, officer: CEO 5301 STEVENS CREEK BLVD., MS 1A-LC, SANTA CLARA CA 95051
Neil Dougherty officer: SVP & CFO 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Huei Sin Ee officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Jeffrey K Li officer: SVP and Secretary 1400 FOUNTAINGROVE PKWY, SANTA ROSA CA 95403
John Page officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Soon Chai Gooi officer: SVP 5301 STEVENS CREEK BLVD., SANTA CLARA CA 95051
James Cullen director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Satish Dhanasekaran officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Charles J Dockendorff director COVIDIEN LTD., 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Ingrid A Estrada officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
John C. Skinner officer: VP & Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403