Willis Lease Finance (Willis Lease Finance) Interest Coverage : 1.84 (As of Dec. 2023)

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What is Willis Lease Finance 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. Willis Lease Finance's Operating Income for the three months ended in Dec. 2023 was $41.1 Mil. Willis Lease Finance's Interest Expense for the three months ended in Dec. 2023 was $-22.3 Mil. Willis Lease Finance's interest coverage for the quarter that ended in Dec. 2023 was 1.84. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Willis Lease Finance Corp interest coverage is 2.06, which is low.

The historical rank and industry rank for Willis Lease Finance's Interest Coverage or its related term are showing as below:

WLFC' s Interest Coverage Range Over the Past 10 Years
Min: 1.24 Med: 1.7 Max: 2.48
Current: 2.06

WLFC's Interest Coverage is ranked worse than
89.27% of 792 companies
in the Business Services industry
Industry Median: 13.34 vs WLFC: 2.06

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

Willis Lease Finance Interest Coverage Historical Data

The historical data trend for Willis Lease Finance'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.

Willis Lease Finance Interest Coverage Chart

Willis Lease Finance Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

2.48

1.63

1.24

1.44

1.87

Willis Lease Finance 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															1.43	2.11	2.09	1.84	2.19

Competitive Comparison of Willis Lease Finance's Interest Coverage

For the Rental & Leasing Services subindustry, Willis Lease Finance'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.

Willis Lease Finance's Interest Coverage Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Willis Lease Finance's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Willis Lease Finance's Interest Coverage falls into.

Willis Lease Finance 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.

Willis Lease Finance'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, Willis Lease Finance's Interest Expense was $-78.8 Mil. Its Operating Income was $147.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,802.9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	147.415	/	-78.795
	=	1.87

Willis Lease Finance's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Willis Lease Finance's Interest Expense was $-22.3 Mil. Its Operating Income was $41.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,802.9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	41.061	/	-22.269
	=	1.84

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

Willis Lease Finance (NAS:WLFC) 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 .

Willis Lease Finance Interest Coverage Related Terms

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

Willis Lease Finance (Willis Lease Finance) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Willis Lease Finance Corp (NAS:WLFC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

4700 Lyons Technology Parkway, Coconut Creek, FL, USA, 33073

Website

https://www.willislease.com

Willis Lease Finance Corp with its subsidiaries is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments namely Leasing and Related Operations which involves acquiring and leasing, pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and Spare Parts Sales segment involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components.

Executives

Willis Charles F Iv	director, 10 percent owner, officer: Executive Chairman	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Scott B. Flaherty	officer: SVP, CFO	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Brian Richard Hole	officer: President	4700 LYONS TECHNOLOGY, SUITE 2215, COCONUT CREEK FL 33073
Hans Jorg Hunziker	director	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Austin Chandler Willis	director	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Rae Ann Mckeating	director	PO BOX 593, MCCALL ID 83638
Robert J. Keady	director	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Robert T Morris	director	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Dean Michael Poulakidas	officer: SVP, Gen. Counsel, Secretary	4700 LYONS TECHNOLOGY, COCONUT CREEK FL 33073
Anthony R. Spaulding	officer: SVP, Technical Services	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Donald A Nunemaker	officer: EVP, General Mgr. Leasing	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Bradley Stewart Forsyth	officer: SVP, CFO	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Ernest J. Furtado	officer: Interim CFO	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Coon W William Jr	director	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998
Judith M Webber	officer: SVP, Technical Services	773 SAN MARIN DRIVE, SUITE 2215, NOVATO CA 94998