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Johnson & Johnson (NYSE:JNJ)
Interest Expense
$-262 Mil (TTM As of Sep. 2015)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Johnson & Johnson's interest expense for the three months ended in Sep. 2015 was $-123 Mil. Its interest expense for the trailing twelve months (TTM) ended in Sep. 2015 was $-262 Mil.

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. Johnson & Johnson's Operating Income for the three months ended in Sep. 2015 was $4,633 Mil. Johnson & Johnson's Interest Expense for the three months ended in Sep. 2015 was $-123 Mil. Johnson & Johnson's interest coverage for the quarter that ended in Sep. 2015 was 37.67. The higher the ratio, the stronger the company’s financial strength is.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Johnson & Johnson Interest Expense for the trailing twelve months (TTM) ended in Sep. 2015 was -139 (Dec. 2014 ) + 0 (Mar. 2015 ) + 0 (Jun. 2015 ) + -123 (Sep. 2015 ) = $-262 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

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. The higher, the better.

Johnson & Johnson's interest expense for the three months ended in Sep. 2015 was $-123 Mil. Its operating income for the three months ended in Sep. 2015 was $4,633 Mil. And its Long-Term Debt for the three months ended in Sep. 2015 was $14,073 Mil.

Johnson & Johnson's Interest Coverage for the quarter that ended in Sep. 2015 is calculated as

Interest Coverage=-1*Operating Income (Q: Sep. 2015 )/Interest Expense (Q: Sep. 2015 )
=-1*4633/-123
=37.67

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

The higher the ratio, the stronger the company’s financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Johnson & Johnson has enough cash to cover all of its debt. Its financial situation is stable.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Johnson & Johnson Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Interest Expense -63-296-435-451-455-571-532-482-5330

Johnson & Johnson Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Interest Expense -105-13400-130-13900-1230
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