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# Versum Materials Effective Interest Rate on Debt %

: 5.32% (As of Jun. 2019)
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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 Short-Term Debt & Capital Lease Obligation. Versum Materials's annualized positive value of Interest Expense for the quarter that ended in Jun. 2019 was \$52 Mil. Versum Materials's average total debt for the quarter that ended in Jun. 2019 was \$978 Mil. Therefore, Versum Materials's annualized effective interest rate on debt for the quarter that ended in Jun. 2019 was 5.32%.

## Versum Materials Effective Interest Rate on Debt % Historical Data

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

 Versum Materials Annual Data Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Effective Interest Rate on Debt % 11.76 3.92 0.08 4.81 4.92

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Versum Materials Effective Interest Rate on Debt % Distribution

* The bar in red indicates where Versum Materials's Effective Interest Rate on Debt % falls into.

## Versum Materials Effective Interest Rate on Debt % Calculation

Versum Materials's annualized Effective Interest Rate on Debt for the fiscal year that ended in Sep. 2018 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (A: Sep. 2017 ) + Total Debt  (A: Sep. 2018 )) / 2 ) = -1  *  -48.3 / ( (982.8 + 980) / 2 ) = -1  *  -48.3 / 981.4 = 4.92 %

where

 Total Debt  (A: Sep. 2017 ) = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 977 + 5.8 = 982.8

 Total Debt  (A: Sep. 2018 ) = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 974.2 + 5.8 = 980

Versum Materials's annualized Effective Interest Rate on Debt for the quarter that ended in Jun. 2019 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (Q: Mar. 2019 ) + Total Debt  (Q: Jun. 2019 )) / 2 ) = -1  *  -52 / ( (978.3 + 977) / 2 ) = -1  *  -52 / 977.65 = 5.32 %

where

 Total Debt  (Q: Mar. 2019 ) = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 972.2 + 6.1 = 978.3

 Total Debt  (Q: Jun. 2019 ) = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 971.2 + 5.8 = 977

* 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 (Jun. 2019) interest expense data. Effective Interest Rate on Debt is displayed in the 30-year financial page.

Versum Materials  (NYSE:VSM) Effective Interest Rate on Debt % Explanation

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