Keurig Green Mountain (Keurig Green Mountain) Interest Coverage : 71.66 (As of Dec. 2015)

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What is Keurig Green Mountain 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. Keurig Green Mountain's Operating Income for the three months ended in Dec. 2015 was $161 Mil. Keurig Green Mountain's Interest Expense for the three months ended in Dec. 2015 was $-2 Mil. Keurig Green Mountain's interest coverage for the quarter that ended in Dec. 2015 was 71.66. The higher the ratio, the stronger the company's financial strength is.

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

GMCR's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.39
* Ranked among companies with meaningful Interest Coverage only.

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

Keurig Green Mountain Interest Coverage Historical Data

The historical data trend for Keurig Green Mountain'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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Keurig Green Mountain Interest Coverage Chart

Keurig Green Mountain Annual Data

Trend

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Interest Coverage

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6.40

24.75

42.10

81.02

406.71

Keurig Green Mountain Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
Interest Coverage	Get a 7-Day Free Trial															198.64	868.25	418.03	1,126.26	71.66

Competitive Comparison of Keurig Green Mountain's Interest Coverage

For the Packaged Foods subindustry, Keurig Green Mountain'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.

Keurig Green Mountain's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Keurig Green Mountain's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Keurig Green Mountain's Interest Coverage falls into.

Keurig Green Mountain 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.

Keurig Green Mountain's Interest Coverage for the fiscal year that ended in Sep. 2015 is calculated as

Here, for the fiscal year that ended in Sep. 2015, Keurig Green Mountain's Interest Expense was $-2 Mil. Its Operating Income was $765 Mil. And its Long-Term Debt & Capital Lease Obligation was $448 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2015 )	/	Interest Expense (A: Sep. 2015 )
	=	-1	*	765.424	/	-1.882
	=	406.71

Keurig Green Mountain's Interest Coverage for the quarter that ended in Dec. 2015 is calculated as

Here, for the three months ended in Dec. 2015, Keurig Green Mountain's Interest Expense was $-2 Mil. Its Operating Income was $161 Mil. And its Long-Term Debt & Capital Lease Obligation was $597 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2015 )	/	Interest Expense (Q: Dec. 2015 )
	=	-1	*	160.813	/	-2.244
	=	71.66

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

Keurig Green Mountain (NAS:GMCR) 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 .

Keurig Green Mountain Interest Coverage Related Terms

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

Keurig Green Mountain (Keurig Green Mountain) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Keurig Green Mountain Inc (NAS:GMCR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.keuriggreenmountain.com

Keurig Green Mountain Inc is a Delaware Corporation formed in July 1993. The Company is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, it produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company manages its operations through three business segments, the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). Due to this combination, the results of U.S. operations, formerly reported in the SCBU and KBU segments, are reported in the Domestic segment and the results of Canadian operations are in the "Canada" segment. The Domestic segment sells single cup brewers and accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in portion packs and coffee in more traditional packaging including bags and fractional packs to retailers including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to consumers through Company websites. The Canada segment sells single cup brewers, accessories, and sources, produces and sells coffee, teas and other beverages in portion packs and coffee in more traditional packaging including bags, cans and fractional packs under a variety of brands to retailers including supermarkets, department stores, mass merchandisers, club stores, through office coffee services to offices, convenience stores, restaurants, hospitality accounts, and to consumers through its website. The Company's competitors in the coffee marketplace include large national and international companies and numerous local and regional companies.

Executives

Coca Cola Co	10 percent owner	ONE COCA COLA PLAZA, ATLANTA GA 30313
John D Hayes	director	AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Mackay A D David	director
Robert Allan Steele	director	1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jose Octavio Reyes	director
Stephen L Gibbs	officer: VP, Chief Accounting Officer	C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Susan S Kilsby	director	33 COFFEE LANE, WATERBURY VT 05676
Norman H Wesley	director	225 W WESTMINSTER, LAKE FOREST IL 60045
Brian P Kelley	director, officer: CEO and President	P.O. BOX 90608, AUSTIN TX 78709
Barbara D Carlini	director	C/O GREEN MOUNTAIN COFFEE ROASTERS INC 33 COFFEE LANE WATERBURY VT 05676
Robert Paul Ostryniec	officer: Chief Product Supply Officer	33 COFFEE LANE, WATERBURY VT 05676
Peter G Leemputte	officer: Chief Financial Officer	CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Michael J Mardy	director
Frances G Rathke	officer: Chief Financial Officer	C/O GREEN MOUNTAIN COFFEE ROASTERS, INC., 33 COFFEE LANE, WATERBURY VT 05676
Sonia Galindo	officer: Corporate Secretary	C/O ROSETTA STONE, 1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209