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SNY (Sanofi) Interest Coverage : 11.63 (As of Jun. 2024)


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What is Sanofi 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. Sanofi's Operating Income for the six months ended in Jun. 2024 was $4,857 Mil. Sanofi's Interest Expense for the six months ended in Jun. 2024 was $-418 Mil. Sanofi's interest coverage for the quarter that ended in Jun. 2024 was 11.63. The higher the ratio, the stronger the company's financial strength is.

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

SNY' s Interest Coverage Range Over the Past 10 Years
Min: 8.15   Med: 15.61   Max: 25.77
Current: 13.57


SNY's Interest Coverage is ranked worse than
50.15% of 660 companies
in the Drug Manufacturers industry
Industry Median: 13.625 vs SNY: 13.57

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


Sanofi Interest Coverage Historical Data

The historical data trend for Sanofi'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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Sanofi Interest Coverage Chart

Sanofi 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 15.44 18.18 23.51 25.77 15.77

Sanofi Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 25.75 25.79 15.77 15.77 11.63

Competitive Comparison of Sanofi's Interest Coverage

For the Drug Manufacturers - General subindustry, Sanofi'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.


Sanofi's Interest Coverage Distribution in the Drug Manufacturers Industry

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

* The bar in red indicates where Sanofi's Interest Coverage falls into.



Sanofi 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.

Sanofi'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, Sanofi's Interest Expense was $-719 Mil. Its Operating Income was $11,333 Mil. And its Long-Term Debt & Capital Lease Obligation was $17,559 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*11332.606/-718.648
=15.77

Sanofi's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Sanofi's Interest Expense was $-418 Mil. Its Operating Income was $4,857 Mil. And its Long-Term Debt & Capital Lease Obligation was $15,324 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*4856.835/-417.653
=11.63

* 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.


Sanofi  (NAS:SNY) 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 .


Sanofi Interest Coverage Related Terms

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


Sanofi Business Description

Address
46, avenue de la Great Army, Paris, FRA, 75017
Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, over-the-counter treatments and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in this large therapeutic area. The company offers a diverse array of drugs with its highest revenue generator, Dupixent, representing just over 20% of total sales, but profits are shared with Regeneron. Just over 40% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.