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Bristol-Myers Squibb Co (MEX:BMY) Interest Coverage : 4.30 (As of Sep. 2024)


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What is Bristol-Myers Squibb 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. Bristol-Myers Squibb Co's Operating Income for the three months ended in Sep. 2024 was MXN42,767 Mil. Bristol-Myers Squibb Co's Interest Expense for the three months ended in Sep. 2024 was MXN-9,944 Mil. Bristol-Myers Squibb Co's interest coverage for the quarter that ended in Sep. 2024 was 4.30. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Bristol-Myers Squibb Co's Interest Coverage or its related term are showing as below:

MEX:BMY' s Interest Coverage Range Over the Past 10 Years
Min: 1.53   Med: 8.73   Max: 27.95
Current: 4.12


MEX:BMY's Interest Coverage is ranked worse than
73.03% of 660 companies
in the Drug Manufacturers industry
Industry Median: 13.625 vs MEX:BMY: 4.12

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


Bristol-Myers Squibb Co Interest Coverage Historical Data

The historical data trend for Bristol-Myers Squibb 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.

* Premium members only.

Bristol-Myers Squibb Co Interest Coverage Chart

Bristol-Myers Squibb Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.01 1.53 6.40 7.39 7.03

Bristol-Myers Squibb Co 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 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 7.00 6.02 3.56 3.25 4.30

Competitive Comparison of Bristol-Myers Squibb Co's Interest Coverage

For the Drug Manufacturers - General subindustry, Bristol-Myers Squibb 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.


Bristol-Myers Squibb Co's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Bristol-Myers Squibb Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bristol-Myers Squibb Co's Interest Coverage falls into.



Bristol-Myers Squibb 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.

Bristol-Myers Squibb Co'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, Bristol-Myers Squibb Co's Interest Expense was MXN-19,792 Mil. Its Operating Income was MXN139,104 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN648,128 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*139103.962/-19791.973
=7.03

Bristol-Myers Squibb Co's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Bristol-Myers Squibb Co's Interest Expense was MXN-9,944 Mil. Its Operating Income was MXN42,767 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN987,606 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*42767.332/-9943.602
=4.30

* 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.


Bristol-Myers Squibb Co  (MEX:BMY) 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 .


Bristol-Myers Squibb Co Interest Coverage Related Terms

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Bristol-Myers Squibb Co Business Description

Address
Route 206 and Province Line Road, Princeton, New Jersey, NJ, USA, 08543
Bristol-Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, cancer, and immune disorders. A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. Bristol derives close to 70% of total sales from the US, showing a higher dependence on the US market than most of its peer group.

Bristol-Myers Squibb Co Headlines