Dassault Aviation (XPAR:AM) Interest Coverage : 153.57 (As of Dec. 2023)

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What is Dassault Aviation 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. Dassault Aviation's Operating Income for the six months ended in Dec. 2023 was €188 Mil. Dassault Aviation's Interest Expense for the six months ended in Dec. 2023 was €-1 Mil. Dassault Aviation's interest coverage for the quarter that ended in Dec. 2023 was 153.57. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dassault Aviation SA has enough cash to cover all of its debt. Its financial situation is stable.

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

XPAR:AM' s Interest Coverage Range Over the Past 10 Years
Min: 4.75 Med: 32.64 Max: 196.2
Current: 80.54

XPAR:AM's Interest Coverage is ranked better than
87.44% of 215 companies
in the Aerospace & Defense industry
Industry Median: 7 vs XPAR:AM: 80.54

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

Dassault Aviation Interest Coverage Historical Data

The historical data trend for Dassault Aviation'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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Dassault Aviation Interest Coverage Chart

Dassault Aviation Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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10.57

56.37

136.77

196.20

80.54

Dassault Aviation Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															146.59	98.98	446.13	50.70	153.57

Competitive Comparison of Dassault Aviation's Interest Coverage

For the Aerospace & Defense subindustry, Dassault Aviation'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.

Dassault Aviation's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Dassault Aviation's Interest Coverage distribution charts can be found below:

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

Dassault Aviation 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.

Dassault Aviation'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, Dassault Aviation's Interest Expense was €-4 Mil. Its Operating Income was €339 Mil. And its Long-Term Debt & Capital Lease Obligation was €208 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	339.251	/	-4.212
	=	80.54

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

Here, for the six months ended in Dec. 2023, Dassault Aviation's Interest Expense was €-1 Mil. Its Operating Income was €188 Mil. And its Long-Term Debt & Capital Lease Obligation was €208 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	187.658	/	-1.222
	=	153.57

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

Dassault Aviation (XPAR:AM) 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 .

Dassault Aviation Interest Coverage Related Terms

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

Dassault Aviation (XPAR:AM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Dassault Aviation SA (XPAR:AM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DUAVF:USA AMp:UK 0IAX:UK DAU0:Germany DAAV:Austria

Address

9, Rond-Point des Champs-Elysees, Marcel Dassault, Paris, FRA, 75008

Website

https://www.dassault-aviation.com

Dassault Aviation, a subsidiary of French multinational company Dassault Group, designs, builds and maintains military fighter jets, and is one of the largest manufacturers of business jets. Dassault has a 24.8% stake in narrow-moat Thales, which contributes significantly to Dassault's net profit. In 2021, Dassault Aviation generated EUR 7.2 billion in revenue with 12,000 employees. About 70% of revenue comes from defense aircraft equipment sales and services, while Falcon business jets generate the remaining 30% of sales.