JM Smucker Co (LTS:0L7F) Interest Coverage : 4.47 (As of Oct. 2024)

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What is JM Smucker Co 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. JM Smucker Co's Operating Income for the three months ended in Oct. 2024 was $441 Mil. JM Smucker Co's Interest Expense for the three months ended in Oct. 2024 was $-99 Mil. JM Smucker Co's interest coverage for the quarter that ended in Oct. 2024 was 4.47. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for JM Smucker Co's Interest Coverage or its related term are showing as below:

LTS:0L7F' s Interest Coverage Range Over the Past 10 Years
Min: 4.13 Med: 7.39 Max: 10.39
Current: 4.13

LTS:0L7F's Interest Coverage is ranked worse than
65.28% of 1440 companies
in the Consumer Packaged Goods industry
Industry Median: 8.175 vs LTS:0L7F: 4.13

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

JM Smucker Co Interest Coverage Historical Data

The historical data trend for JM Smucker Co'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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JM Smucker Co Interest Coverage Chart

JM Smucker Co Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Interest Coverage

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6.83

7.83

7.29

7.77

5.48

JM Smucker Co Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Interest Coverage	Get a 7-Day Free Trial															9.10	3.97	4.56	3.55	4.47

Competitive Comparison of JM Smucker Co's Interest Coverage

For the Packaged Foods subindustry, JM Smucker Co'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.

JM Smucker Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, JM Smucker Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where JM Smucker Co's Interest Coverage falls into.

JM Smucker Co 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.

JM Smucker Co's Interest Coverage for the fiscal year that ended in Apr. 2024 is calculated as

Here, for the fiscal year that ended in Apr. 2024, JM Smucker Co's Interest Expense was $-264 Mil. Its Operating Income was $1,449 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,917 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Apr. 2024 )	/	Interest Expense (A: Apr. 2024 )
	=	-1	*	1448.9	/	-264.3
	=	5.48

JM Smucker Co's Interest Coverage for the quarter that ended in Oct. 2024 is calculated as

Here, for the three months ended in Oct. 2024, JM Smucker Co's Interest Expense was $-99 Mil. Its Operating Income was $441 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,895 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Oct. 2024 )	/	Interest Expense (Q: Oct. 2024 )
	=	-1	*	441.2	/	-98.7
	=	4.47

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

JM Smucker Co (LTS:0L7F) 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 .

JM Smucker Co Interest Coverage Related Terms

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

JM Smucker Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » JM Smucker Co (LTS:0L7F) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SJM:USA JM2:Germany JM2:Germany S1JM34:Brazil

Address

One Strawberry Lane, Orrville, OH, USA, 44667-0280

Website

https://www.jmsmucker.com

J.M. Smucker is a packaged food company that primarily sells through the US retail channel (78% of fiscal 2024 revenue came through its retail pet foods, coffee, and frozen handheld/spreads segments), with the remaining share consisting of Hostess and international (primarily Canada). Retail coffee is its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.

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