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AdvancePierre Foods Holdings (AdvancePierre Foods Holdings) Interest Coverage : 4.54 (As of Mar. 2017)


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What is AdvancePierre Foods Holdings 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. AdvancePierre Foods Holdings's Operating Income for the three months ended in Mar. 2017 was $61 Mil. AdvancePierre Foods Holdings's Interest Expense for the three months ended in Mar. 2017 was $-13 Mil. AdvancePierre Foods Holdings's interest coverage for the quarter that ended in Mar. 2017 was 4.54. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for AdvancePierre Foods Holdings's Interest Coverage or its related term are showing as below:


APFH's Interest Coverage is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 8.52
* Ranked among companies with meaningful Interest Coverage only.

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


AdvancePierre Foods Holdings Interest Coverage Historical Data

The historical data trend for AdvancePierre Foods Holdings'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.

* Premium members only.

AdvancePierre Foods Holdings Interest Coverage Chart

AdvancePierre Foods Holdings Annual Data
Trend Dec13 Dec14 Dec15 Dec16
Interest Coverage
0.52 0.72 1.44 1.76

AdvancePierre Foods Holdings Quarterly Data
Dec13 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 1.89 1.17 2.75 1.22 4.54

Competitive Comparison of AdvancePierre Foods Holdings's Interest Coverage

For the Packaged Foods subindustry, AdvancePierre Foods Holdings'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.


AdvancePierre Foods Holdings's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, AdvancePierre Foods Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where AdvancePierre Foods Holdings's Interest Coverage falls into.



AdvancePierre Foods Holdings 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.

AdvancePierre Foods Holdings's Interest Coverage for the fiscal year that ended in Dec. 2016 is calculated as

Here, for the fiscal year that ended in Dec. 2016, AdvancePierre Foods Holdings's Interest Expense was $-105 Mil. Its Operating Income was $184 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,079 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2016 )/Interest Expense (A: Dec. 2016 )
=-1*183.993/-104.695
=1.76

AdvancePierre Foods Holdings's Interest Coverage for the quarter that ended in Mar. 2017 is calculated as

Here, for the three months ended in Mar. 2017, AdvancePierre Foods Holdings's Interest Expense was $-13 Mil. Its Operating Income was $61 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,080 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2017 )/Interest Expense (Q: Mar. 2017 )
=-1*60.691/-13.373
=4.54

* 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.

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


AdvancePierre Foods Holdings  (NYSE:APFH) 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 .


AdvancePierre Foods Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of AdvancePierre Foods Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


AdvancePierre Foods Holdings (AdvancePierre Foods Holdings) Business Description

Traded in Other Exchanges
N/A
Address
AdvancePierre Foods Holdings Inc was incorporated in Delaware on December 5, 2008 as Pierre Foods Holding Corporation and changed its name to AdvancePierre Foods Holdings, Inc., on March 16, 2016. The Company is a producer and distributor of value-added, ready-to-eat sandwiches, sandwich components and other entrées and snacks. It markets and distributes multiple product categories including ready-to-eat sandwiches, such as breakfast sandwiches, PB&J sandwiches and hamburgers; sandwich components, such as fully-cooked hamburger and chicken patties and Philly steaks; and other entrées and snacks, such as country fried steak, stuffed entrées, chicken tenders and cinnamon dough bites. The Company sells its value-added products to the foodservice, retail and convenience channels, as well as in the industrial channel. It operates in four segments Foodservice, Retail, Convenience and Industrial. Its Foodservice customers include national and regional distributors, who sells Company's products to end-customers including restaurant operators, schools, U.S. military and grocery deli counters. Its Retail segment serves an array of retail customers including national and regional grocery chains, major warehouse club stores, mass retailers and dollar stores. The Convenience segment represents outlet for ready-to-eat sandwiches and includes sales to vending providers. Industrial segment consists of sales to other food producers under short-term co-manufacturing agreements. Its competitors include American Food Group, CTI, Allied Specialty Foods, Devault Foods, Lopez Foods and JTM Food Group.
Executives
Stephen A Kaplan director 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Fund Gp I, L.p. 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group Holdings Gp, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Group, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital I, L.p. 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Ocm Holdings I, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Holdings, Llc 10 percent owner 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Oaktree Capital Management Lp 10 percent owner 333 S GRAND AVE 28TH FL, LOS ANGELES CA 90071
Gary L Perlin director 1680 CAPITAL ONE DRIVE, C/O CAPITAL ONE FINANCIAL CORP, MCLEAN VA 22102
Celeste A. Clark director C/O ADVANCEPIERRE FOODS HOLDINGS, INC., 9987 CARVER ROAD, BLUE ASH OH 45242
Richard Dean Hollis director, other: Chairman of the Board 3603 HAVEN AVENUE, SUITE E, MENLO PARK CA 94025
Michael B Sims officer: CFO 250 EAST FIFTH STREET, CINCINNATI OH 45202
Christopher D Sliva director, officer: CEO & President 2515 MCKINNEY AVENUE, SUITE 1200, DALLAS TX 75201
Simons John Nelson Jr director, officer: CEO 7931 EAGLE RANCH ROAD, FT. COLLINS CO 80528
Margaret M Cannella director C/O SCHRODERS, 875 THIRD AVENUE, 22ND FLOOR, NEW YORK NY 10022

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