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. JM Smucker Co's
Operating Income
for the
three
months ended in Jan. 2024 was $396 Mil. JM Smucker Co's Interest Expense for the
three
months ended in Jan. 2024 was $-100 Mil.
JM Smucker Co's interest coverage for the quarter that ended in Jan. 2024 was 3.97.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for JM Smucker Co's Interest Coverage or its related term are showing as below:
SJM'
s Interest Coverage Range Over the Past 10 Years
Min: 5.76 Med: 7.59 Max: 11.9
Current: 6.88
SJM's Interest Coverage is ranked worse than 53.65% of 1383
companies
in the Consumer Packaged Goods industry
Industry Median: 8.39
vs SJM: 6.88
The historical data trend for JM Smucker Co'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.
Competitive Comparison of JM Smucker Co's Interest Coverage
For the Packaged Foods subindustry, JM Smucker Co'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.
JM Smucker Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, JM Smucker Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where JM Smucker Co's Interest Coverage falls into.
JM Smucker Co 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:
* 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.
JM Smucker Co (NYSE:SJM) 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 .
JM Smucker Co Interest Coverage Related Terms
Thank you for viewing the detailed overview of JM Smucker Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
JM Smucker Co (JM Smucker Co) Business Description
J.M. Smucker is a packaged food company that primarily sells through the U.S. retail channel (77% of forecast fiscal 2024 revenue), with the remaining share consisting of Hostess, foodservice, and international (primarily Canada). Following the divestiture of several pet foods brands and private-label products that constituted about $1.5 billion of sales, retail coffee is now its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
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