Premium Brands Holdings (FRA:5P7) Interest Coverage : 1.94 (As of Sep. 2024)

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What is Premium Brands 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. Premium Brands Holdings's Operating Income for the three months ended in Sep. 2024 was €65 Mil. Premium Brands Holdings's Interest Expense for the three months ended in Sep. 2024 was €-33 Mil. Premium Brands Holdings's interest coverage for the quarter that ended in Sep. 2024 was 1.94. The higher the ratio, the stronger the company's financial strength is.

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

FRA:5P7' s Interest Coverage Range Over the Past 10 Years
Min: 1.87 Med: 3.58 Max: 6.95
Current: 1.87

FRA:5P7's Interest Coverage is ranked worse than
83.13% of 1440 companies
in the Consumer Packaged Goods industry
Industry Median: 8.175 vs FRA:5P7: 1.87

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

Premium Brands Holdings Interest Coverage Historical Data

The historical data trend for Premium Brands 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.

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Premium Brands Holdings Interest Coverage Chart

Premium Brands Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.95

3.16

3.99

2.87

1.92

Premium Brands Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															2.27	1.71	1.22	2.55	1.94

Competitive Comparison of Premium Brands Holdings's Interest Coverage

For the Packaged Foods subindustry, Premium Brands 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.

Premium Brands Holdings's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Premium Brands Holdings's Interest Coverage falls into.

Premium Brands 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.

Premium Brands Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Premium Brands Holdings's Interest Expense was €-120 Mil. Its Operating Income was €230 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,762 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	229.66	/	-119.82
	=	1.92

Premium Brands Holdings's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Premium Brands Holdings's Interest Expense was €-33 Mil. Its Operating Income was €65 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,705 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	64.718	/	-33.324
	=	1.94

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

Premium Brands Holdings (FRA:5P7) 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 .

Premium Brands Holdings Interest Coverage Related Terms

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

Premium Brands Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Premium Brands Holdings Corp (FRA:5P7) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PRBZF:USA PBH:Canada

Address

100 - 10991 Shellbridge Way, Richmond, BC, CAN, V6X 3C6

Website

https://www.premiumbrandsholdings.com

Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. The company's business segments include Specialty Foods, Premium Food Distribution, and Corporate. The Specialty Foods segment consists of its specialty food manufacturing businesses, which contributes about two-thirds of the group revenue; the Premium Food Distribution segment consists of the company's distribution and wholesale businesses; the Corporate segment includes the company's head office activities along with its finance and information systems. Its geographical segments are the United States and Canada.

Premium Brands Holdings Headlines

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