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Kellogg Co  (NYSE:K) Effective Interest Rate on Debt %: 3.11% (As of Sep. 2017)

Effective interest rate on debt is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Current Portion of Long-Term Debt. Kellogg Co's annualized positive value of Interest Expense for the quarter that ended in Sep. 2017 was \$256 Mil. Kellogg Co's average total debt for the quarter that ended in Sep. 2017 was \$8,228 Mil. Therefore, Kellogg Co's annualized effective interest rate on debt for the quarter that ended in Sep. 2017 was 3.11%.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Kellogg Co Annual Data

 Effective Interest Rate on Debt %

Kellogg Co Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Effective Interest Rate on Debt % 2.88 3.22 3.10 3.10 3.11

Competitive Comparison
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Calculation

Kellogg Co's annualized Effective Interest Rate on Debt for the fiscal year that ended in . 20 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (A: . 20 ) + Total Debt  (A: . 20 )) / 2 ) = -1  * / ( ( + ) / 2 ) = -1  * / = %

where

 Total Debt  (A: . 20 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = + =

 Total Debt  (A: . 20 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = + =

Kellogg Co's annualized Effective Interest Rate on Debt for the quarter that ended in Sep. 2017 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (Q: Jun. 2017 ) + Total Debt  (Q: Sep. 2017 )) / 2 ) = -1  *  -256 / ( (8258 + 8198) / 2 ) = -1  *  -256 / 8228 = 3.11 %

where

 Total Debt  (Q: Jun. 2017 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 7123 + 1135 = 8258

 Total Debt  (Q: Sep. 2017 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 7216 + 982 = 8198

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual effective interest rate on debt, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Sep. 2017) interest expense data. Effective Interest Rate on Debt is displayed in the 30-year financial page.

Explanation

Effective interest rate on debt measures the usage rate that a borrower actually pays on a debt.

Related Terms