Tempur Sealy International (Tempur Sealy International) Interest Coverage : 3.63 (As of Dec. 2023)

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What is Tempur Sealy International 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. Tempur Sealy International's Operating Income for the three months ended in Dec. 2023 was $112 Mil. Tempur Sealy International's Interest Expense for the three months ended in Dec. 2023 was $-31 Mil. Tempur Sealy International's interest coverage for the quarter that ended in Dec. 2023 was 3.63. The higher the ratio, the stronger the company's financial strength is.

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

TPX' s Interest Coverage Range Over the Past 10 Years
Min: 2.59 Med: 4.18 Max: 13.3
Current: 4.5

TPX's Interest Coverage is ranked worse than
68.25% of 315 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 8.72 vs TPX: 4.50

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

Tempur Sealy International Interest Coverage Historical Data

The historical data trend for Tempur Sealy International'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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Tempur Sealy International Interest Coverage Chart

Tempur Sealy International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

3.86

6.70

13.30

6.40

4.50

Tempur Sealy International 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															4.44	4.23	4.60	5.48	3.63

Competitive Comparison of Tempur Sealy International's Interest Coverage

For the Furnishings, Fixtures & Appliances subindustry, Tempur Sealy International'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.

Tempur Sealy International's Interest Coverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Tempur Sealy International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Tempur Sealy International's Interest Coverage falls into.

Tempur Sealy International 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.

Tempur Sealy International'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, Tempur Sealy International's Interest Expense was $-130 Mil. Its Operating Income was $584 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,102 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	584.2	/	-129.9
	=	4.50

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

Here, for the three months ended in Dec. 2023, Tempur Sealy International's Interest Expense was $-31 Mil. Its Operating Income was $112 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,102 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	112.3	/	-30.9
	=	3.63

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

Tempur Sealy International (NYSE:TPX) 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 .

Tempur Sealy International Interest Coverage Related Terms

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

Tempur Sealy International (Tempur Sealy International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Tempur Sealy International Inc (NYSE:TPX) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TPD:Germany

Address

1000 Tempur Way, Lexington, KY, USA, 40511

Website

https://www.tempursealy.com

Tempur Sealy International Inc is one of the world's largest bedding providers. The firm develops and distributes bedding products globally through its North America and international segments (Europe, Asia Pacific, and Latin America). Tempur Sealy's products are divided into the bedding and other product categories. The bedding category comprises the majority of net sales. The primary distribution channels of the company within each segment are retail (including furniture and bedding retailers, department stores, and warehouse clubs) and other (including e-commerce platforms, company-owned stores, and third-party distributors). The majority of net sales is derived from retail. Some major brands of the firm include Tempur, Tempur-Pedic, Sealy, and Stearns and Foster.

Executives

Evelyn S Dilsaver	director	C/O LONGS DRUG STORES CORPORATION, 141 NORTH CIVIC DRIVE, WALNUT CREEK CA 94596
Hansbart Wijnand	officer: EVP, INTERNATIONAL	1000 TEMPUR WAY, LEXINGTON KY 40511
David Montgomery	officer: Exec VP, Pres of Intl Ops	TEMPUR SEALY INTERNATIONAL, INC., 1000 TEMPUR WAY, LEXINGTON KY 40511
Bhaskar Rao	officer: CAO & VP of Strategic Planning	TEMPUR SEALY INTERNATIONAL, INC., 1000 TEMPUR WAY, LEXINGTON KY 40511
Simon Dyer	director	1000 TEMPUR WAY, LEXINGTON KY 40511
Meredith R. Siegfried	director	C/O SKYWEST, INC., 444 S RIVER ROAD, ST. GEORGE UT 84790
Scott L Thompson	director, officer: Chairman, President and CEO	950 ECHO LN STE 100, HOUSTON TX 77024
Thomas A. Murray	officer: EVP, CMO U.S.	C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Buster H Clifford Iii	officer: EVP, Direct to Consumer	1000 TEMPUR WAY, LEXINGTON KY 74135
Scott Vollet	officer: EVP, Global Operations	1000, TEMPUR WAY, LEXINGTON KY 40511
Trussell Robert B Jr	director	TEMPUR SEALY INTERNATIONAL, INC., 1000 TEMPUR WAY, LEXINGTON KY 40511
Steven H Rusing	officer: President, U.S. Sales	C/O SEALY CORPORATION, ONE OFFICE PARKWAY, TRINITY NC 27370
Arik W Ruchim	director	600 CORPORATION DRIVE, PENDLETON IN 46064
Richard W Neu	director	1100 WILSON BOULEVARD, SUITE 3000, ARLINGTON VA 22209
John Heil	director	VCA ANTECH INC, 12401 WEST OLYMPIC BLVD, LOS ANGELES CA 90064