Inrad Optics (Inrad Optics) Interest Coverage : 5.71 (As of Dec. 2023)

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What is Inrad Optics 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. Inrad Optics's Operating Income for the three months ended in Dec. 2023 was $0.19 Mil. Inrad Optics's Interest Expense for the three months ended in Dec. 2023 was $-0.03 Mil. Inrad Optics's interest coverage for the quarter that ended in Dec. 2023 was 5.71. The higher the ratio, the stronger the company's financial strength is.

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

INRD' s Interest Coverage Range Over the Past 10 Years
Min: 1.92 Med: 5.66 Max: 12.51
Current: 12.51

INRD's Interest Coverage is ranked worse than
50.13% of 1590 companies
in the Hardware industry
Industry Median: 12.525 vs INRD: 12.51

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

Inrad Optics Interest Coverage Historical Data

The historical data trend for Inrad Optics'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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Inrad Optics Interest Coverage Chart

Inrad Optics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

5.87

1.92

12.51

Inrad Optics 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															2.03	3.42	19.92	20.92	5.71

Competitive Comparison of Inrad Optics's Interest Coverage

For the Electronic Components subindustry, Inrad Optics'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.

Inrad Optics's Interest Coverage Distribution in the Hardware Industry

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

* The bar in red indicates where Inrad Optics's Interest Coverage falls into.

Inrad Optics 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.

Inrad Optics's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Inrad Optics's Interest Expense was $-0.15 Mil. Its Operating Income was $1.81 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.88 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1.814	/	-0.145
	=	12.51

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

Here, for the three months ended in Dec. 2023, Inrad Optics's Interest Expense was $-0.03 Mil. Its Operating Income was $0.19 Mil. And its Long-Term Debt & Capital Lease Obligation was $2.88 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	0.194	/	-0.034
	=	5.71

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

Inrad Optics (OTCPK:INRD) 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 .

Inrad Optics Interest Coverage Related Terms

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

Inrad Optics (Inrad Optics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Inrad Optics Inc (OTCPK:INRD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

181 Legrand Avenue, Northvale, NJ, USA, 07647

Website

https://www.inradoptics.com

Inrad Optics Inc develops, manufactures and markets products and services for use in photonics industry sectors. It is a vertically integrated manufacturer focusing on crystal-based optical components and devices, custom optical components from both glass and metal, and precision optical and optomechanical assemblies. Its product categories include Optical Components and Laser System Devices/Instrumentation. The company's customers include corporations in the defense, aerospace, laser systems, process control, and metrology sectors of the photonics industry, as well as the United States Government, National Laboratories and universities around the world.

Executives

Dennis G Romano	director	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Norman E. Strandlund	director	181 LEGRAND AVENUE, NORTHVALE NJ 07647
Amy Eskilson	officer: CEO	RIVERCREST CO-OP, 103 GEDNEY ST., APT 1H, NYACK NY 10960
George F Murray	officer: VP SALES & MARKETING	INRAD OPTICS, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Thomas Caughey	director	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Theresa A Balog	officer: Chief Financial Officer	C/O INRAD OPTICS, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Jan M Winston	director	141 LANSDOWNE, WESTPORT CT 06880
John M Duich	officer: VP Operations Sarasota	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Joseph J Rutherford	director, officer: President/CEO	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Miroslav Dosoudil	officer: VP Operations	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
John R Ryan	officer: VP Sales & Marketing	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Lavalle Luke P Jr	director	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
William Brucker	officer: VP, Human Resources	C/O PHOTONIC PRODUCTS GROUP, INC., 181 LEGRAND AVENUE, NORTHVALE NJ 07647
William J Foote	officer: CHIEF FINANCIAL OFFICER	C/O PPGI, 181 LEGRAND AVENUE, NORTHVALE NJ 07647
Daniel Lehrfeld	officer: President & CEO	34 GREENWOOD DRIVE, NEW CITY NY 10956

Inrad Optics (Inrad Optics) Headlines

From GuruFocus

INVESTIGATION: The M&A Class Action Firm Announces an Investigation of Inrad Optics, Inc. - INRD

By PRNewswire • 04-10-2024