A. O. Smith Corporation logo
AOSA. O. Smith Corporation

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.

Interest Coverage

AOS Interest Coverage Ratio

22.79x

Reported quarterly interest coverage; no daily interpolation.

-86.17% 5Y
AOS Interest Coverage Ratio

AOS Average Interest Coverage Ratio Chart

AOS Interest Coverage Ratio

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

NAMEMARKET CAPINTEREST COVERAGE RATIOTTM3Y5Y
A. O. Smith Corporation (AOS)$8.54B22.79x49.52x81.75x92.39x
AGCO Corporation (AGCO)vs ›$8.53B10.52x8.31x17.64x22.65x
Gartner, Inc. (IT)vs ›$8.48B9.15x8.98x9.00x8.00x
Kratos Defense & Security Solutions, Inc. (KTOS)vs ›$8.73B2.64x2.27x1.99x1.68x
Everus Construction Group, Inc. (ECG)vs ›$8.35B12.34x12.94x14.66x19.96x
Planet Labs PBC (PL)vs ›$8.76B-27.67xN/AN/AN/A
EnerSys (ENS)vs ›$8.29B7.05x8.07x6.96x6.49x
Aecom (ACM)vs ›$9.01B5.57x5.02x4.48x3.83x
Builders FirstSource, Inc. (BLDR)vs ›$9.47B2.87x5.28x10.98x11.08x
MYR Group Inc. (MYRG)vs ›$7.59B28.79x18.54x23.87x30.06x

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

DATEINTEREST COVERAGE RATIO
2026-03-3122.79x
2025-12-3168.25x
2025-09-3048.78x
2025-06-3044.74x
2025-03-3163.03x
2024-12-3165.04x
2024-09-30107.13x
2024-06-30114.83x
2024-03-31192.50x
2023-12-31168.00x
2023-09-3075.54x
2023-06-3045.42x
2023-03-3146.73x
2022-12-3152.18x
2022-09-3062.29x
2022-06-3079.52x
2022-03-31107.87x
2021-12-31126.00x
2021-09-30162.70x
2021-06-30164.78x
2021-03-31122.10x
2020-12-31152.90x
2020-09-3086.06x
2020-06-3036.64x
2020-03-3129.86x
2019-12-3146.04x
2019-09-3036.10x
2019-06-3038.24x
2019-03-3154.05x
2018-12-3183.83x
2018-09-3064.20x
2018-06-3062.52x
2018-03-3155.91x
2017-12-3148.55x
2017-09-3052.36x
2017-06-3051.44x
2017-03-3154.64x
2016-12-3171.75x
2016-09-3056.48x
2016-06-3065.11x
2016-03-3160.76x
2015-12-3176.79x
2015-09-3066.63x
2015-06-3041.20x
2015-03-3143.16x
2014-12-3152.57x
2014-09-3046.53x
2014-06-3056.29x
2014-03-3146.43x
2013-12-3150.58x
2013-09-3044.93x
2013-06-3041.50x
2013-03-3139.53x
2012-12-3128.95x
2012-09-3023.84x
2012-06-3023.45x
2012-03-3114.60x
2011-12-3111.38x
2011-09-3018.08x
2011-06-3012.76x
2011-03-3120.94x
2010-12-3136.33x
2010-09-3027.88x
2010-06-3033.94x
2010-03-3127.71x
2009-12-31-2.43x
2009-09-3013.84x
2009-06-307.65x
2009-03-315.28x
2008-09-308.22x
2008-06-308.94x
2008-03-317.19x
2007-09-305.22x
2007-06-306.34x
2007-03-315.07x
2006-09-304.47x
2006-06-305.43x
2006-03-3110.13x
2005-09-306.66x
2005-06-306.80x
2005-03-317.56x
2004-09-301.39x
2004-06-309.22x
2004-03-316.13x
2003-12-131.91x
2003-09-304.10x

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.

Milwaukee, WI
12,700 employees
Industrials / Industrial - Machinery
Sector
Industrials
Industry
Industrial - Machinery
CEO
Stephen Shafer