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KDP (Keurig Dr Pepper) Interest Coverage : 5.41 (As of Mar. 2025)


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What is Keurig Dr Pepper 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. Keurig Dr Pepper's Operating Income for the three months ended in Mar. 2025 was $801 Mil. Keurig Dr Pepper's Interest Expense for the three months ended in Mar. 2025 was $-148 Mil. Keurig Dr Pepper's interest coverage for the quarter that ended in Mar. 2025 was 5.41. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Keurig Dr Pepper's Interest Coverage or its related term are showing as below:

KDP' s Interest Coverage Range Over the Past 10 Years
Min: 2.74   Med: 5.15   Max: 11.09
Current: 4.74


KDP's Interest Coverage is ranked worse than
78.41% of 88 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 14.085 vs KDP: 4.74

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


Keurig Dr Pepper Interest Coverage Historical Data

The historical data trend for Keurig Dr Pepper'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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Keurig Dr Pepper Interest Coverage Chart

Keurig Dr Pepper Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.22 5.79 4.02 6.44 4.50

Keurig Dr Pepper Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.30 4.22 8.51 3.16 5.41

Competitive Comparison of Keurig Dr Pepper's Interest Coverage

For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper'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.


Keurig Dr Pepper's Interest Coverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Keurig Dr Pepper's Interest Coverage falls into.


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Keurig Dr Pepper 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.

Keurig Dr Pepper's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Keurig Dr Pepper's Interest Expense was $-735 Mil. Its Operating Income was $3,309 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,379 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*3309/-735
=4.50

Keurig Dr Pepper's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, Keurig Dr Pepper's Interest Expense was $-148 Mil. Its Operating Income was $801 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,371 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*801/-148
=5.41

* 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.


Keurig Dr Pepper  (NAS:KDP) 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 .


Keurig Dr Pepper Interest Coverage Related Terms

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


Keurig Dr Pepper Business Description

Address
53 South Avenue, Burlington, MA, USA, 01803
Keurig Dr Pepper was established in 2018 following a merger between Keurig Green Mountain Coffee and Dr Pepper Snapple. The company manufactures and distributes coffee systems (including coffee brewers and single-serve coffee pods) under the Keurig and Green Mountain brands, as well as ready-to-drink beverages including flavored (non-cola) sparkling soft drinks under well-known brands such as Dr Pepper, Snapple, and Canada Dry. The company controls production and route to market for its own brands through in-house manufacturing plants and distribution infrastructure and leverages these facilities to manufacture and distribute for third-party coffee and beverage brands via licensing and partnership agreements. The US and Canada make up 95% of revenue, with the rest from Mexico.
Executives
Mary Beth Denooyer officer: Chief Human Resources Officer 53 SOUTH AVENUE, BURLINGTON MA 01803
Angela A. Stephens officer: Sr. Vice President, Controller 6425 HALL OF FAME LANE, FRISCO TX 75034
Robert James Gamgort director, officer: CEO & President KEURIG DR PEPPER INC., 6425 HALL OF FAME LANE, FRISCO TX 75034
Maple Holdings B.v. 10 percent owner OOSTERDOKSSTRAAT 80, AMSTERDAM P7 1011DK
Matthew Andrew Archambault officer: President, Commercial 6425 HALL OF FAME LANE, FRISCO TX 75034
Roger Frederick Johnson officer: Chief Supply Chain Officer 53 SOUTH AVENUE, BURLINGTON MA 01803
Jab Holdings B.v. 10 percent owner PIET HEINKADE 55, AMSTERDAM P7 NL 1019 GM
Karin Rotem-wildeman officer: Chief R&D Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Robert S Singer director 6301 FITCH PATH, NEW ALBANY OH 43054
Sudhanshu Shekhar Priyadarshi officer: Chief Financial Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Olivier Goudet director 350 FIFTH AVENUE, NEW YORK NY 10118
Peter Harf director C/O COTY INC., 350 FIFTH AVENUE, NEW YORK NY 10118
Timothy P. Cofer officer: Chief Operating Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Anthony Shoemaker officer: Chief Legal Officer 6425 HALL OF FAME LANE, FRISCO TX 75034
Maria A. Sceppaguercio-gever officer: Chief Corp. Affairs Officer 53 SOUTH AVENUE, BURLINGTON MA 01803