Lifeway Foods (Lifeway Foods) Interest Coverage

: 92.79 (As of Dec. 2023)

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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. Lifeway Foods's Operating Income for the three months ended in Dec. 2023 was $5.8 Mil. Lifeway Foods's Interest Expense for the three months ended in Dec. 2023 was $-0.1 Mil. Lifeway Foods's interest coverage for the quarter that ended in Dec. 2023 was 92.79. The higher the ratio, the stronger the company's financial strength is.

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

LWAY' s Interest Coverage Range Over the Past 10 Years
Min: 8.8 Med: 27.66 Max: 50.69
Current: 44.26

LWAY's Interest Coverage is ranked better than
77.41% of 1381 companies
in the Consumer Packaged Goods industry
Industry Median: 8.34 vs LWAY: 44.26

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

Lifeway Foods Interest Coverage Historical Data

The historical data trend for Lifeway Foods'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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Lifeway Foods Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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41.72

50.69

8.80

44.26

Lifeway Foods Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															20.44	13.82	43.72	46.23	92.79

Competitive Comparison

For the Packaged Foods subindustry, Lifeway Foods'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.

Lifeway Foods Interest Coverage Distribution

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

* The bar in red indicates where Lifeway Foods's Interest Coverage falls into.

Lifeway Foods 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.

Lifeway Foods'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, Lifeway Foods's Interest Expense was $-0.4 Mil. Its Operating Income was $17.0 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.6 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	16.995	/	-0.384
	=	44.26

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

Here, for the three months ended in Dec. 2023, Lifeway Foods's Interest Expense was $-0.1 Mil. Its Operating Income was $5.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.6 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	5.753	/	-0.062
	=	92.79

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

Lifeway Foods (NAS:LWAY) 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 .

Lifeway Foods Interest Coverage Related Terms

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

Lifeway Foods (Lifeway Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lifeway Foods Inc (NAS:LWAY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LWF:Germany

Address

6431 West Oakton Street, Morton Grove, IL, USA, 60053

Website

https://www.lifewaykefir.com

Lifeway Foods Inc is engaged in manufacturing probiotic, cultured, functional dairy health food products. Its primary product is drinkable kefir which is a cultured dairy product. Its product categories are Drinkable Kefir which is the key revenue-driving product, European-style soft cheeses, Cream, ProBugs, Frozen Kefir and Other dairy. The company manufacture and market products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers. It sells the products primarily through direct sales force, brokers, and distributors.

Executives

Edward Smolyansky	officer: CFO, Treasurer
Julie Smolyansky	director, officer: President and CEO
Ludmila Smolyansky	director, 10 percent owner
Juan Carlos Dalto	director	3059 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Perfecto Sanchez	director	153 DIEHL ROAD, CALLICOON NY 12723
Dorri Mcwhorter	director	6431 OAKTON STREET, C/O LIFEWAY FOODS, INC., MORTON GROVE IL 60053
Jody Levy	director	6431 OAKTON STREET, C/O LIFEWAY FOODS, INC., MORTON GROVE IL 60053
George Sent	director	C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Amy M. Feldman	officer: SENIOR EXECUTIVE VP OF SALES	C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Neha J Clark	officer: Chief Financial Officer	C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Eric A Hanson	officer: Chief Accounting Officer	C/O LIFEWAY FOODS, 6431 OAKTON STREET, MORTON GROVE IL 60053
Laurent Marcel	director	C/O DANONE NA, 1 MAPLE AVE, WHITE PLAINS NY 10605
Douglas Hass	officer: Gen Counsel & Asst Corp Sec.	1205 KIMBALL BLVD., JASPER IN 47546
Jennifer Reilly	officer: Sr Exec V. President of Sales	6431 W. OAKTON STREET, MORTON GROVE IL 60053
John P Waldron	officer: Chief Financial officer	LIFEWAY FOODS, INC., 6431 W. OAKTON STREET, MORTON GROVE IL 60053