BRF (BRFS) Interest Coverage

: 0.60 (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. BRF's Operating Income for the three months ended in Dec. 2023 was $201 Mil. BRF's Interest Expense for the three months ended in Dec. 2023 was $-335 Mil. BRF's interest coverage for the quarter that ended in Dec. 2023 was 0.60. The higher the ratio, the stronger the company's financial strength is.

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

BRFS' s Interest Coverage Range Over the Past 10 Years
Min: 0.17 Med: 1.09 Max: 3.62
Current: 0.17

BRFS's Interest Coverage is ranked worse than
98.91% of 1375 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs BRFS: 0.17

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

BRF Interest Coverage Historical Data

The historical data trend for BRF'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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BRF Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.08

1.40

1.04

0.19

BRF Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																-	-	-	0.64	0.60

Competitive Comparison

For the Packaged Foods subindustry, BRF'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.

BRF Interest Coverage Distribution

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

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

BRF 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.

BRF'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, BRF's Interest Expense was $-809 Mil. Its Operating Income was $155 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,168 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	155.053	/	-809
	=	0.19

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

Here, for the three months ended in Dec. 2023, BRF's Interest Expense was $-335 Mil. Its Operating Income was $201 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,168 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	201.422	/	-334.737
	=	0.60

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

BRF (NYSE:BRFS) 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 .

BRF Interest Coverage Related Terms

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BRF (BRFS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » BRF SA (NYSE:BRFS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BRFS:Mexico P5Y:Germany BRFS3:Brazil BRFS:Argentina

Address

Avenida das Nacoes Unidas, 8501 – 1st Floor, Pinheiros, Sao Paulo, SP, BRA, 05425-070

Website

https://www.brf-global.com

BRF SA is an international producer of fresh and frozen protein foods. The firm's segments are In natura (poultry, pork, bovine, and other), Processed foods, and Other sales. The product portfolio includes marinated, frozen, whole and cut meat, specialty meats, portioned products, and frozen prepared entrees. The company also offers margarine, sweet specialties, sandwiches, mayonnaise, and animal feed. Its most well-known brands are Sadia, Chester, Perdix, Paty, Perdigao, and Qualy. Internationally, the portfolio's leading brand is Sadia, which is present in multiple categories in Middle Eastern countries. Geographically, sales are distributed evenly between Brazil and international markets.