Sandoz Group AG (Sandoz Group AG) Interest Coverage : 1.86 (As of Dec. 2023)

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What is Sandoz Group AG 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. Sandoz Group AG's Operating Income for the three months ended in Dec. 2023 was $375 Mil. Sandoz Group AG's Interest Expense for the three months ended in Dec. 2023 was $-202 Mil. Sandoz Group AG's interest coverage for the quarter that ended in Dec. 2023 was 1.86. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sandoz Group AG's Interest Coverage or its related term are showing as below:

SDZNY' s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 7.89 Max: 13.92
Current: 1.86

SDZNY's Interest Coverage is ranked worse than
83.16% of 683 companies
in the Drug Manufacturers industry
Industry Median: 12.1 vs SDZNY: 1.86

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

Sandoz Group AG Interest Coverage Historical Data

The historical data trend for Sandoz Group AG'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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Sandoz Group AG Interest Coverage Chart

Sandoz Group AG Annual Data

Trend

Dec22

Dec23

Interest Coverage

13.92

1.86

Sandoz Group AG Quarterly Data
	Dec22	Dec23
Interest Coverage	13.92	1.86

Competitive Comparison of Sandoz Group AG's Interest Coverage

For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG'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.

Sandoz Group AG's Interest Coverage Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sandoz Group AG's Interest Coverage falls into.

Sandoz Group AG 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.

Sandoz Group AG'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, Sandoz Group AG's Interest Expense was $-202 Mil. Its Operating Income was $375 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,230 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	375	/	-202
	=	1.86

Sandoz Group AG's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sandoz Group AG's Interest Expense was $-202 Mil. Its Operating Income was $375 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,230 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	375	/	-202
	=	1.86

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

Sandoz Group AG (OTCPK:SDZNY) 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 .

Sandoz Group AG Interest Coverage Related Terms

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

Sandoz Group AG (Sandoz Group AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Sandoz Group AG (OTCPK:SDZNY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SDZXF:USA SDZz:UK D8Y0:Germany SDZ:Switzerland

Address

Forum 1, Novartis Campus, Basel, CHE, CH-4056

Website

https://www.sandoz.com

Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $9 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006 as well as U.S.'s first biosimilar, Zarxio, in 2015. It currently has eight commercialized biosimilars in a number of markets and has over 20 assets in pipeline.

Sandoz Group AG (Sandoz Group AG) Headlines

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