Interest Coverage Ratio: 22.79x
Is the interest coverage ratio high or low?
The interest coverage ratio of 22.79x is 75% below its 5-year average of 92.39x, near the low end of its 5-year range (22.79x–192.50x).
As of Friday, June 26, 2026. 53.98% below its 12-month average of 49.52x.
AOS Interest Coverage Ratio
Reported quarterly interest coverage; no daily interpolation.
AOS Average Interest Coverage Ratio Chart
AOS Current vs Average Interest Coverage Ratio Chart
AOS Interest Coverage Ratio Metrics
INTEREST COVERAGE RATIO
22.79x
INTEREST COVERAGE RATIO AVG TTM
49.52x
INTEREST COVERAGE RATIO AVG 3Y
81.75x
INTEREST COVERAGE RATIO AVG 5Y
92.39x
INTEREST COVERAGE RATIO AVG 10Y
64.08x
INTEREST COVERAGE RATIO AVG 15Y
52.20x
INTEREST COVERAGE RATIO AVG 20Y
44.91x
CURRENT VS TTM AVG
-53.98%
CURRENT VS 3Y AVG
-72.12%
CURRENT VS 5Y AVG
-75.33%
CURRENT VS 10Y AVG
-64.44%
CURRENT VS 15Y AVG
-56.34%
CURRENT VS 20Y AVG
-49.25%
AOS Competitors' Interest Coverage Ratio
| NAME | MARKET CAP | INTEREST COVERAGE RATIO | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| A. O. Smith Corporation (AOS) | $8.54B | 22.79x | 49.52x | 81.75x | 92.39x |
| AGCO Corporation (AGCO)vs › | $8.53B | 10.52x | 8.31x | 17.64x | 22.65x |
| Gartner, Inc. (IT)vs › | $8.48B | 9.15x | 8.98x | 9.00x | 8.00x |
| Kratos Defense & Security Solutions, Inc. (KTOS)vs › | $8.73B | 2.64x | 2.27x | 1.99x | 1.68x |
| Everus Construction Group, Inc. (ECG)vs › | $8.35B | 12.34x | 12.94x | 14.66x | 19.96x |
| Planet Labs PBC (PL)vs › | $8.76B | -27.67x | N/A | N/A | N/A |
| EnerSys (ENS)vs › | $8.29B | 7.05x | 8.07x | 6.96x | 6.49x |
| Aecom (ACM)vs › | $9.01B | 5.57x | 5.02x | 4.48x | 3.83x |
| Builders FirstSource, Inc. (BLDR)vs › | $9.47B | 2.87x | 5.28x | 10.98x | 11.08x |
| MYR Group Inc. (MYRG)vs › | $7.59B | 28.79x | 18.54x | 23.87x | 30.06x |
Financial Health Indicators
Interest Coverage
22.8x
Debt/Equity
0.10
Current Ratio
1.50
Formula: Interest Coverage = EBIT / Interest Expense
Reference ranges:
- < 1.5x: EBIT is less than 1.5 times interest expense
- 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
- 3x - 5x: EBIT is between 3 and 5 times interest expense
- > 5x: EBIT is more than 5 times interest expense
Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.
Interest Coverage Ratio Formula & Definition
Interest Coverage = EBIT / Interest Expense
The interest coverage ratio measures operating earnings relative to interest expense.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Interest Coverage Ratio FAQ
- What is the interest coverage ratio for A. O. Smith Corporation (AOS)?
- The interest coverage ratio for AOS stock is 22.79x.
- Is A. O. Smith Corporation's interest coverage ratio high or low?
- The interest coverage ratio of 22.79x is 75% below its 5-year average of 92.39x, near the low end of its 5-year range (22.79x–192.50x).
- What is the TTM average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The TTM average interest coverage ratio for AOS stock is 49.52x.
- What is the 3Y average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The 3Y average interest coverage ratio for AOS stock is 81.75x.
- What is the 5Y average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The 5Y average interest coverage ratio for AOS stock is 92.39x.
- What is the 10Y average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The 10Y average interest coverage ratio for AOS stock is 64.08x.
- What is the 15Y average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The 15Y average interest coverage ratio for AOS stock is 52.20x.
- What is the 20Y average interest coverage ratio for A. O. Smith Corporation (AOS)?
- The 20Y average interest coverage ratio for AOS stock is 44.91x.
AOS Interest Coverage Ratio History
| DATE | INTEREST COVERAGE RATIO |
|---|---|
| 2026-03-31 | 22.79x |
| 2025-12-31 | 68.25x |
| 2025-09-30 | 48.78x |
| 2025-06-30 | 44.74x |
| 2025-03-31 | 63.03x |
| 2024-12-31 | 65.04x |
| 2024-09-30 | 107.13x |
| 2024-06-30 | 114.83x |
| 2024-03-31 | 192.50x |
| 2023-12-31 | 168.00x |
| 2023-09-30 | 75.54x |
| 2023-06-30 | 45.42x |
| 2023-03-31 | 46.73x |
| 2022-12-31 | 52.18x |
| 2022-09-30 | 62.29x |
| 2022-06-30 | 79.52x |
| 2022-03-31 | 107.87x |
| 2021-12-31 | 126.00x |
| 2021-09-30 | 162.70x |
| 2021-06-30 | 164.78x |
| 2021-03-31 | 122.10x |
| 2020-12-31 | 152.90x |
| 2020-09-30 | 86.06x |
| 2020-06-30 | 36.64x |
| 2020-03-31 | 29.86x |
| 2019-12-31 | 46.04x |
| 2019-09-30 | 36.10x |
| 2019-06-30 | 38.24x |
| 2019-03-31 | 54.05x |
| 2018-12-31 | 83.83x |
| 2018-09-30 | 64.20x |
| 2018-06-30 | 62.52x |
| 2018-03-31 | 55.91x |
| 2017-12-31 | 48.55x |
| 2017-09-30 | 52.36x |
| 2017-06-30 | 51.44x |
| 2017-03-31 | 54.64x |
| 2016-12-31 | 71.75x |
| 2016-09-30 | 56.48x |
| 2016-06-30 | 65.11x |
| 2016-03-31 | 60.76x |
| 2015-12-31 | 76.79x |
| 2015-09-30 | 66.63x |
| 2015-06-30 | 41.20x |
| 2015-03-31 | 43.16x |
| 2014-12-31 | 52.57x |
| 2014-09-30 | 46.53x |
| 2014-06-30 | 56.29x |
| 2014-03-31 | 46.43x |
| 2013-12-31 | 50.58x |
| 2013-09-30 | 44.93x |
| 2013-06-30 | 41.50x |
| 2013-03-31 | 39.53x |
| 2012-12-31 | 28.95x |
| 2012-09-30 | 23.84x |
| 2012-06-30 | 23.45x |
| 2012-03-31 | 14.60x |
| 2011-12-31 | 11.38x |
| 2011-09-30 | 18.08x |
| 2011-06-30 | 12.76x |
| 2011-03-31 | 20.94x |
| 2010-12-31 | 36.33x |
| 2010-09-30 | 27.88x |
| 2010-06-30 | 33.94x |
| 2010-03-31 | 27.71x |
| 2009-12-31 | -2.43x |
| 2009-09-30 | 13.84x |
| 2009-06-30 | 7.65x |
| 2009-03-31 | 5.28x |
| 2008-09-30 | 8.22x |
| 2008-06-30 | 8.94x |
| 2008-03-31 | 7.19x |
| 2007-09-30 | 5.22x |
| 2007-06-30 | 6.34x |
| 2007-03-31 | 5.07x |
| 2006-09-30 | 4.47x |
| 2006-06-30 | 5.43x |
| 2006-03-31 | 10.13x |
| 2005-09-30 | 6.66x |
| 2005-06-30 | 6.80x |
| 2005-03-31 | 7.56x |
| 2004-09-30 | 1.39x |
| 2004-06-30 | 9.22x |
| 2004-03-31 | 6.13x |
| 2003-12-13 | 1.91x |
| 2003-09-30 | 4.10x |
About A. O. Smith Corporation
A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World. The company's product portfolio is extensive, featuring residential and commercial water heaters (gas, heat pump, and electric models), boilers, storage tanks, and various water treatment systems. These products cater to a wide range of applications, including homes, apartments, and condominiums, as well as commercial entities such as restaurants, hotels, office buildings, laundries, car washes, small businesses, hospitals, and schools. Specific offerings include diverse water treatment products like point-of-entry water softeners, well water purification systems, whole-home filtration units, portable filtration bottles, point-of-use carbon filters, and reverse osmosis systems, designed for residential, restaurant, hotel, and office use. A. O. Smith also supplies food and beverage filtration products, expansion tanks, commercial solar water heating installations, and heaters for swimming pools and spas, along with associated components. Advanced heating solutions further encompass heat pumps, electric wall-hung units, gas tankless heaters, combi-boilers, and integrated heat pump and solar water heaters. Products are primarily sold under established brands such as A. O. Smith, State, and Lochinvar, in addition to specialized water softener brands. The company leverages various distribution channels, including independent wholesale plumbing distributors, retail outlets like hardware and home center chains, and manufacturer representative firms. Its Aquasana-branded products are sold directly to consumers through e-commerce platforms and other online retailers. Founded in 1874, A. O. Smith Corporation maintains its corporate headquarters in Milwaukee, Wisconsin.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Stephen Shafer