Aptiv (APTV) Interest Coverage

: 6.83 (As of Dec. 2023)

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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. Aptiv's Operating Income for the three months ended in Dec. 2023 was $485 Mil. Aptiv's Interest Expense for the three months ended in Dec. 2023 was $-71 Mil. Aptiv's interest coverage for the quarter that ended in Dec. 2023 was 6.83. The higher the ratio, the stronger the company's financial strength is.

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

APTV' s Interest Coverage Range Over the Past 10 Years
Min: 5 Med: 9.58 Max: 14.06
Current: 6.21

APTV's Interest Coverage is ranked worse than
56.16% of 1031 companies
in the Vehicles & Parts industry
Industry Median: 7.7 vs APTV: 6.21

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

Aptiv Interest Coverage Historical Data

The historical data trend for Aptiv'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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Aptiv Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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8.68

5.00

8.09

6.16

6.21

Aptiv 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															7.63	5.36	6.28	6.32	6.83

Competitive Comparison

For the Auto Parts subindustry, Aptiv'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.

Aptiv Interest Coverage Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Aptiv's Interest Coverage distribution charts can be found below:

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

Aptiv 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.

Aptiv'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, Aptiv's Interest Expense was $-285 Mil. Its Operating Income was $1,770 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,657 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1770	/	-285
	=	6.21

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

Here, for the three months ended in Dec. 2023, Aptiv's Interest Expense was $-71 Mil. Its Operating Income was $485 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,657 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	485	/	-71
	=	6.83

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

Aptiv (NYSE:APTV) 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 .

Aptiv Interest Coverage Related Terms

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

Aptiv (APTV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Aptiv PLC (NYSE:APTV) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

APTV:Mexico D7A:Germany D7A:Germany APTV34:Brazil

Address

5 Hanover Quay, Grand Canal Dock, Dublin, IRL, D02 VY79

Website

https://www.aptiv.com

Aptiv's signal and power solutions segment supplies components and systems that make up a vehicle's electrical system, including wiring assemblies and harnesses, connectors, electrical centers, and hybrid electrical systems. The advanced safety and user experience segment provides body controls, infotainment and connectivity systems, passive and active safety electronics, advanced driver-assist technologies, and displays, as well as the development of software for these systems. Aptiv's largest customers are General Motors and Stellantis, both at roughly 9% of 2022 revenue, followed by Ford and Volkswagen, both at 8%. North America and Europe represented approximately 37% and 31% of total 2022 revenue, respectively.

Executives

Joseph R Massaro	officer: SVP and CFO	5725 DELPHI DRIVE, TROY MI 48098
Kevin P Clark	officer: VP & CFO
Nancy E Cooper	director	26 CHERRY TREE LANE, RIVERSIDE CT 06878
William T. Presley	officer: SVP & President, S&PS	5725 INNOVATION DRIVE, TROY MI 48098
Matthew M Cole	officer: SVP & President, ASUX	ONE VILLAGE CENTER DRIVE, VAN BUREN TOWNSHIP MI 48111
Obed D. Louissaint	officer: SVP & Chief People Officer	5725 INNOVATION DRIVE, TROY MI 48098
Benjamin Lyon	officer: SVP & CTO	1900 SKYHAWK STREET, ALAMEDA CA 94501
Sophia Velastegui	officer: SVP & Chief Product Officer	21300 VICTORY BLVD., 12TH FLOOR, WOODLAND HILLS CA 91367
Mariya K. Trickett	officer: SVP and CHRO	5725 INNOVATION DRIVE, TROY MI 48098
Merit E Janow	director	C/O TRIMBLE INC., 935 STEWART DRIVE, SUNNYVALE CA 94085
De Vos Glen W.	officer: SVP & CTO	5725 INNOVATION DRIVE, TROY MI 48098
Katherine H Ramundo	officer: SVP, CLO, CCO & Secretary	C/O APTIV, 5725 INNOVATION DRIVE, TROY MI 48098
David M Sherbin	officer: VP, GC & Secretary	4181 AO SOUTHMOOR LANE, WEST BLOOMFIELD MI 48323
Richard L Clemmer	director	P O BOX 34552, LAS VEGAS NV 89129
Joseph L Hooley	director	STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111