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Defence Tech Holding SpA (MIL:DTH) Interest Coverage : 4.40 (As of Jun. 2023)


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What is Defence Tech Holding SpA 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. Defence Tech Holding SpA's Operating Income for the six months ended in Jun. 2023 was €3.33 Mil. Defence Tech Holding SpA's Interest Expense for the six months ended in Jun. 2023 was €-0.76 Mil. Defence Tech Holding SpA's interest coverage for the quarter that ended in Jun. 2023 was 4.40. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Defence Tech Holding SpA's Interest Coverage or its related term are showing as below:

MIL:DTH' s Interest Coverage Range Over the Past 10 Years
Min: 1.85   Med: 7.85   Max: 13.37
Current: 10.24

MIL:DTH's Interest Coverage is ranked better than
62.2% of 209 companies
in the Aerospace & Defense industry
Industry Median: 6.88 vs MIL:DTH: 10.24

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

Defence Tech Holding SpA Interest Coverage Historical Data

The historical data trend for Defence Tech Holding SpA'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.

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Defence Tech Holding SpA Interest Coverage Chart

Defence Tech Holding SpA Annual Data
Trend Dec19 Dec20 Dec21 Dec22
Interest Coverage
1.85 3.23 13.37 12.46

Defence Tech Holding SpA Semi-Annual Data
Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Interest Coverage Get a 7-Day Free Trial 16.14 11.31 5.30 - 4.40

Competitive Comparison of Defence Tech Holding SpA's Interest Coverage

For the Aerospace & Defense subindustry, Defence Tech Holding SpA'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.

Defence Tech Holding SpA's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Defence Tech Holding SpA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Defence Tech Holding SpA's Interest Coverage falls into.


Defence Tech Holding SpA 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.

Defence Tech Holding SpA's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Defence Tech Holding SpA's Interest Expense was €-0.51 Mil. Its Operating Income was €6.29 Mil. And its Long-Term Debt & Capital Lease Obligation was €6.97 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*6.294/-0.505
=12.46

Defence Tech Holding SpA's Interest Coverage for the quarter that ended in Jun. 2023 is calculated as

Here, for the six months ended in Jun. 2023, Defence Tech Holding SpA's Interest Expense was €-0.76 Mil. Its Operating Income was €3.33 Mil. And its Long-Term Debt & Capital Lease Obligation was €5.84 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2023 )/Interest Expense (Q: Jun. 2023 )
=-1*3.334/-0.758
=4.40

* 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.

Defence Tech Holding SpA  (MIL:DTH) 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 .

Defence Tech Holding SpA Interest Coverage Related Terms

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

Defence Tech Holding SpA (MIL:DTH) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Defence Tech Holding SpA (MIL:DTH) » Definitions » Interest Coverage
Comparable Companies
MIL:OS MIL:AVIO MIL:PAG RTX BA LMT XPAR:AIR NOC GD XPAR:SAF TDG LSE:BA. LHX XPAR:HO LSE:RR. HEI.A HWM SHSE:600760 SHSE:600150 XPAR:AM
Traded in Other Exchanges
65F:Germany
Address
Via Giacomo Peroni, 452, Rome, ITA, 00131
Website
https://www.defencetech.it
Defence Tech Holding SpA operates in the cyber security, big data, intelligence, space and national defense sectors through the design, construction and certification of information management systems.