Leidos Holdings (Leidos Holdings) Interest Coverage : 8.41 (As of Mar. 2024)

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What is Leidos 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. Leidos Holdings's Operating Income for the three months ended in Mar. 2024 was $412 Mil. Leidos Holdings's Interest Expense for the three months ended in Mar. 2024 was $-49 Mil. Leidos Holdings's interest coverage for the quarter that ended in Mar. 2024 was 8.41. The higher the ratio, the stronger the company's financial strength is.

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

LDOS' s Interest Coverage Range Over the Past 10 Years
Min: 3.94 Med: 5.37 Max: 7.01
Current: 7.01

LDOS's Interest Coverage is ranked worse than
73.05% of 1599 companies
in the Software industry
Industry Median: 29.34 vs LDOS: 7.01

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

Leidos Holdings Interest Coverage Historical Data

The historical data trend for Leidos 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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Leidos Holdings Interest Coverage Chart

Leidos Holdings Annual Data

Trend

Jan14

Jan15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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5.84

5.31

6.32

5.69

6.14

Leidos Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															4.85	5.89	6.57	7.39	8.41

Competitive Comparison of Leidos Holdings's Interest Coverage

For the Information Technology Services subindustry, Leidos 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.

Leidos Holdings's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, Leidos Holdings's Interest Coverage distribution charts can be found below:

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

Leidos 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.

Leidos Holdings'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, Leidos Holdings's Interest Expense was $-212 Mil. Its Operating Income was $1,302 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,180 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1302	/	-212
	=	6.14

Leidos Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Leidos Holdings's Interest Expense was $-49 Mil. Its Operating Income was $412 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,131 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	412	/	-49
	=	8.41

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

Leidos Holdings (NYSE:LDOS) 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 .

Leidos Holdings Interest Coverage Related Terms

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

Leidos Holdings (Leidos Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Leidos Holdings Inc (NYSE:LDOS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

S6IA:Germany S6IA:Germany L1DO34:Brazil

Address

1750 Presidents Street, Reston, VA, USA, 20190

Website

https://www.leidos.com

Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil and health markets, both domestically and internationally. Company customer includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in three reportable segments; Defense Solutions, Civil, and Health. Defense Solutions provides leading-edge and technologically advanced services, solutions, and products to a broad customer base. It generates key revenue from Defense Solutions.

Executives

Surya N Mohapatra	director	3 GIRALDA FARMS, MADISON NJ 07940
Miriam E John	director	7011 EAST AVENUE, LIVERMORE CA 94550
Noel B Williams	director	1750 PRESIDENTS STREET, RESTON VA 20190
James Robert Moos	officer: Group President	11951 FREEDOM DRIVE, RESTON VA 20190
Cindy Gruensfelder	officer: Executive Vice President	1750 PRESIDENTS STREET, RESTON VA 20190
Roy E Stevens	officer: Chief of Business Development	11951 FREEDOM DRIVE, RESTON VA 20190
Kraemer Harry M Jansen Jr	director	DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Thomas Arthur Bell	director, officer: CEO	1750 PRESIDENTS STREET, RESTON VA 20190
Gary Stephen May	director	11951 FREEDOM DRIVE, RESTON VA 20190
Gregory R Dahlberg	director	11951 FREEDOM DRIVE, RESTON VA 20190
Howe Jerald S Jr	officer: Executive VP & General Counsel
Robert S Shapard	director	P O BOX 696000, SANANTONIO TX 782696000
David G Fubini	director	D.G. FUBINI CONSULTANTS, LLC, 80 SEARS ROAD, BROOKLINE MA 02445
Christopher R Cage	officer: SVP and Corporate Comptroller	11951 FREEDOM DRIVE, RESTON VA 20190
Roger A Krone	director, officer: CEO