Aerojet Rocketdyne Holdings (Aerojet Rocketdyne Holdings) Interest Coverage : 9.35 (As of Mar. 2023)

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What is Aerojet Rocketdyne Holdings 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. Aerojet Rocketdyne Holdings's Operating Income for the three months ended in Mar. 2023 was $53 Mil. Aerojet Rocketdyne Holdings's Interest Expense for the three months ended in Mar. 2023 was $-6 Mil. Aerojet Rocketdyne Holdings's interest coverage for the quarter that ended in Mar. 2023 was 9.35. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Aerojet Rocketdyne Holdings's Interest Coverage or its related term are showing as below:

AJRD' s Interest Coverage Range Over the Past 10 Years
Min: 0.37 Med: 6.37 Max: 12.79
Current: 8.83

AJRD's Interest Coverage is not ranked
in the Aerospace & Defense industry.
Industry Median: 7 vs AJRD: 8.83

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

Aerojet Rocketdyne Holdings Interest Coverage Historical Data

The historical data trend for Aerojet Rocketdyne Holdings'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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Aerojet Rocketdyne Holdings Interest Coverage Chart

Aerojet Rocketdyne Holdings Annual Data

Trend

Nov13

Nov14

Nov15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

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7.87

6.67

7.99

12.79

10.15

Aerojet Rocketdyne Holdings Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage	Get a 7-Day Free Trial															14.34	8.63	13.57	3.89	9.35

Competitive Comparison of Aerojet Rocketdyne Holdings's Interest Coverage

For the Aerospace & Defense subindustry, Aerojet Rocketdyne Holdings'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.

Aerojet Rocketdyne Holdings's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Aerojet Rocketdyne Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aerojet Rocketdyne Holdings's Interest Coverage falls into.

Aerojet Rocketdyne Holdings 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.

Aerojet Rocketdyne Holdings'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, Aerojet Rocketdyne Holdings's Interest Expense was $-19 Mil. Its Operating Income was $189 Mil. And its Long-Term Debt & Capital Lease Obligation was $335 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	188.8	/	-18.6
	=	10.15

Aerojet Rocketdyne Holdings's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, Aerojet Rocketdyne Holdings's Interest Expense was $-6 Mil. Its Operating Income was $53 Mil. And its Long-Term Debt & Capital Lease Obligation was $329 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	53.3	/	-5.7
	=	9.35

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

Aerojet Rocketdyne Holdings (NYSE:AJRD) 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 .

Aerojet Rocketdyne Holdings Interest Coverage Related Terms

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

Aerojet Rocketdyne Holdings (Aerojet Rocketdyne Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

222 N. Pacific Coast Highway, Suite 500, El Segundo, CA, USA, 90245

Website

https://www.aerojetrocketdyne.com

Aerojet Rocketdyne Holdings Inc manufactures aerospace and defense products and systems. It produces driving and launch systems for defense and space applications, weapons, and weapons systems for tactical missions. The systems can provide directional control for rockets, satellites, missiles, and other technical products. It operates in two segments: aerospace and defense, and real estate. The company manufactures its aerospace and defense products for the U.S. government, the National Aeronautics and Space Administration, aerospace and defense prime contractors, and portions of the commercial sector. The real estate segment focuses on rezoning, entitlement, sale, and leasing of real estate assets. The company's excess real estate is primarily located in California.

Executives

Joseph E. Chontos	officer: See Remarks	222 N. PACIFIC COAST HIGHWAY, SEGUNDO CA 90245
Kevin P. Chilton	director	1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380
Lance W Lord	director	1110 TRUMPETERS COURT, MONUMENT CO 80132
Eileen P. Drake	director, officer: CEO and President	C/O GENCORP INC., P.O. BOX 537012, SACRAMENTO CA 95853-7012
Marion C Blakey	director	C/O ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Deborah L James	director	1710 SAIC DRIVE, MCLEAN VA 22102
Gail Baker	director	C/O LEONARDO DRS, INC., 2345 CRYSTAL DRIVE SUITE 1000, ARLINGTON VA 22202
Daniel L. Boehle	officer: CFO, VP and Controller	C/O AEROJET ROCKETDYNE HOLDINGS, INC., 222 N. SEPULVEDA BOULEVARD, SUITE 500, EL SEGUNDO CA 90245
Warren G Lichtenstein	director, officer: Executive Chairman	C/O STEEL PARTNERS II L P, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Arjun Kampani	officer: VP, Gen Counsel and Secretary	C/O AEROJET ROCKETDYNE HOLDINGS, INC., 2001 AEROJET ROAD, RANCHO CORDOVA CA 95742
John D. Schumacher	officer: SVP, Washington Operations	C/O GENCORP INC., P.O. BOX 537012, SACRAMENTO CA 95853-7012
Amy L Gowder	officer: Chief Operating Officer	AEROJET ROCKETDYNE HOLDINGS, INC., 222 N. PACIFIC COAST HIGHWAY, SUITE 500, EL SEGUNDO CA 90245
Audrey A. Mcniff	director	C/O AEROJET ROCKETDYNE HOLDINGS, INC., 222 N. PACIFIC COAST HIGHWAY, SUITE 500, EL SEGUNDO CA 90245
Thomas A Corcoran	director	3790 VIA DE LA VALLE, SUITE 311, DEL MAR CA 92014
Martin Turchin	director	CB RICHARD ELLIS, 200 PARK AVENUE, NEW YOK NY 10166