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Kellogg Co (NYSE:K)
Effective Interest Rate on Debt %
3.10% (As of Mar. 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 Mar. 2017 was $244 Mil. Kellogg Co's average total debt for the quarter that ended in Mar. 2017 was $7,872 Mil. Therefore, Kellogg Co's annualized effective interest rate on debt for the quarter that ended in Mar. 2017 was 3.10%.


Definition

Kellogg Co's annualized Effective Interest Rate on Debt for the fiscal year that ended in Dec. 2016 is calculated as

Effective Interest Rate on Debt
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2015 )+Total Debt  (A: Dec. 2016 ))/ 2 )
=-1  *  -406/( (7745+7767)/ 2 )
=-1  *  -406/7756
=5.23 %

where

Total Debt  (A: Dec. 2015 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=5275 + 2470
=7745

Total Debt  (A: Dec. 2016 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6698 + 1069
=7767

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

Effective Interest Rate on Debt
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2016 )+Total Debt  (Q: Mar. 2017 ))/ 2 )
=-1  *  -244/( (7767+7976)/ 2 )
=-1  *  -244/7871.5
=3.10 %

where

Total Debt  (Q: Dec. 2016 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6698 + 1069
=7767

Total Debt  (Q: Mar. 2017 )
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt
=6715 + 1261
=7976

* 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 (Mar. 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

Interest Expense, Long-Term Debt & Capital Lease Obligation, Current Portion of Long-Term Debt


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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Effective Interest Rate on Debt % 6.215.775.714.603.903.753.082.843.005.23

Kellogg Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Effective Interest Rate on Debt % 2.822.863.052.903.0110.863.312.883.223.10
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