Koninklijke Ahold Delhaize NV (Koninklijke Ahold Delhaize NV) Interest Coverage : 3.53 (As of Dec. 2023)

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What is Koninklijke Ahold Delhaize NV 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. Koninklijke Ahold Delhaize NV's Operating Income for the three months ended in Dec. 2023 was $736 Mil. Koninklijke Ahold Delhaize NV's Interest Expense for the three months ended in Dec. 2023 was $-208 Mil. Koninklijke Ahold Delhaize NV's interest coverage for the quarter that ended in Dec. 2023 was 3.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Koninklijke Ahold Delhaize NV's Interest Coverage or its related term are showing as below:

ADRNY' s Interest Coverage Range Over the Past 10 Years
Min: 3.87 Med: 5.37 Max: 7.04
Current: 3.88

ADRNY's Interest Coverage is ranked worse than
70.75% of 253 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs ADRNY: 3.88

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

Koninklijke Ahold Delhaize NV Interest Coverage Historical Data

The historical data trend for Koninklijke Ahold Delhaize NV'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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Koninklijke Ahold Delhaize NV Interest Coverage Chart

Koninklijke Ahold Delhaize NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.76

4.29

6.21

6.07

3.87

Koninklijke Ahold Delhaize NV 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															6.62	4.99	3.85	3.29	3.53

Competitive Comparison of Koninklijke Ahold Delhaize NV's Interest Coverage

For the Grocery Stores subindustry, Koninklijke Ahold Delhaize NV'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.

Koninklijke Ahold Delhaize NV's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Koninklijke Ahold Delhaize NV's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Koninklijke Ahold Delhaize NV's Interest Coverage falls into.

Koninklijke Ahold Delhaize NV 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.

Koninklijke Ahold Delhaize NV'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, Koninklijke Ahold Delhaize NV's Interest Expense was $-802 Mil. Its Operating Income was $3,104 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,010 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3103.599	/	-801.527
	=	3.87

Koninklijke Ahold Delhaize NV's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Koninklijke Ahold Delhaize NV's Interest Expense was $-208 Mil. Its Operating Income was $736 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,010 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	736.096	/	-208.288
	=	3.53

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

Koninklijke Ahold Delhaize NV (OTCPK:ADRNY) 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 .

Koninklijke Ahold Delhaize NV Interest Coverage Related Terms

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

Koninklijke Ahold Delhaize NV (Koninklijke Ahold Delhaize NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Koninklijke Ahold Delhaize NV (OTCPK:ADRNY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AHODF:USA AD:Netherlands AD:Mexico AD:Italy ADa:UK 0RI8:UK AHOG:Germany AD:Austria

Address

Provincialeweg 11, Zaandam, NH, NLD, 1506 MA

Website

https://www.aholddelhaize.com

Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming the fourth-largest grocer in the U.S. and a top player in many parts of Europe. The U.S. is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The U.S. store network stretches from Maine to Georgia and includes such banners as Stop & Shop, Giant Carlisle, Giant Landover, Food Lion, Hannaford, and Peapod. The Netherlands, Belgium, and Central and Southeastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in these countries.

Koninklijke Ahold Delhaize NV (Koninklijke Ahold Delhaize NV) Headlines

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