RBC Bearings (RBC Bearings) Interest Coverage : 4.88 (As of Dec. 2023)

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What is RBC Bearings 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. RBC Bearings's Operating Income for the three months ended in Dec. 2023 was $94 Mil. RBC Bearings's Interest Expense for the three months ended in Dec. 2023 was $-19 Mil. RBC Bearings's interest coverage for the quarter that ended in Dec. 2023 was 4.88. The higher the ratio, the stronger the company's financial strength is.

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

RBC' s Interest Coverage Range Over the Past 10 Years
Min: 4.39 Med: 23.54 Max: 134
Current: 4.57

RBC's Interest Coverage is ranked worse than
74.61% of 2304 companies
in the Industrial Products industry
Industry Median: 13.775 vs RBC: 4.57

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

RBC Bearings Interest Coverage Historical Data

The historical data trend for RBC Bearings'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.

RBC Bearings Interest Coverage Chart

RBC Bearings Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Interest Coverage

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28.86

107.76

134.00

6.83

4.39

RBC Bearings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.27	2.55	5.03	5.26	4.88

Competitive Comparison of RBC Bearings's Interest Coverage

For the Tools & Accessories subindustry, RBC Bearings'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.

RBC Bearings's Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where RBC Bearings's Interest Coverage falls into.

RBC Bearings 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.

RBC Bearings's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, RBC Bearings's Interest Expense was $-70 Mil. Its Operating Income was $305 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,427 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	305.2	/	-69.5
	=	4.39

RBC Bearings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, RBC Bearings's Interest Expense was $-19 Mil. Its Operating Income was $94 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,299 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	94.1	/	-19.3
	=	4.88

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

RBC Bearings (NYSE:RBC) 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 .

RBC Bearings Interest Coverage Related Terms

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

RBC Bearings (RBC Bearings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » RBC Bearings Inc (NYSE:RBC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

B1X:Germany

Address

102 Willenbrock Road, One Tribology Center, Oxford, CT, USA, 06478

Website

https://www.rbcbearings.com

RBC Bearings Inc is a manufacturer and marketer of precision bearings and products used in aircraft and mechanical systems. The offering includes plain bearings, roller bearings, ball bearings, and engineered products. The products reduce wear in moving parts, facilitate proper power transmission, reduce damage and energy loss, and control pressure and flow. The primary customers for RBC Bearings are industrial markets and aerospace markets such as construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, packaging, commercial, private and military aircraft engines, and guided weaponry. The end market is the United States of America.

Executives

Michael H. Ambrose	director	ONE TRIBOLOGY CENTER, 102 WILLENBROCK ROAD, OXFORD CT 06478
Michael J Hartnett	officer: President and CEO	RBC BEARINGS, INC., 102 WILLENBROCK ROAD, ONE TRIBOLOGY CENTER, OXFORD CT 06478
Richard R Crowell	director	AURORA CAPITAL PARTNERS LP, 10877 WILSHIRE BOULEVARD SUITE 2100, LOS ANGELES CA 90024
Dolores J Ennico	director	RBC BEARINGS INCORPORATED, ONE TRIBOLOGY CENTER, OXFORD CT 06478
Robert M Sullivan	officer: Corporate Controller	103 STILLWOLD DRIVE, WETHERSFIELD CT 06109
John J. Feeney	officer: Vice President and Secretary	ONE TRIBOLOGY CENTER, 102 WILLENBROCK ROAD, OXFORD CT 06478
Steven H. Kaplan	director	11 LINDEN SHORES, BRANFORD CT 06405
Patrick S. Bannon	officer: V.P. and General Manager	131 WOODS WAY DRIVE, SOUTHBURY CT 06488
Richard J Edwards	officer: V.P. and General Manager	RBC BEARINGS INCORPORATED, ONE TRIBOLOGY CENTER, OXFORD CT 06478
Edward Stewart	director	5715 EAST CHENEY DRIVE, PARADISE VALLEY AZ 85253
Daniel A Bergeron	officer: VP and CFO
Alan B Levine	director
Ernest D Hawkins	officer: Vice President of Finance	102 WILLENBROCK ROAD, OXFORD CT 06478
Amir Faghri	director	RBC BEARINGS INCORPORATED, ONE TRIBOLOGY CENTER, OXFORD CT 06478
Joseph Salamunovich	officer: General Counsel and Secretary	RBC BEARINGS INCORPORATED, ONE TRIBOLOGY CENTER, OXFORD CT 06478