St Jude Medical (St Jude Medical) Interest Coverage : 7.33 (As of Sep. 2016)

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What is St Jude Medical 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. St Jude Medical's Operating Income for the three months ended in Sep. 2016 was $286 Mil. St Jude Medical's Interest Expense for the three months ended in Sep. 2016 was $-39 Mil. St Jude Medical's interest coverage for the quarter that ended in Sep. 2016 was 7.33. The higher the ratio, the stronger the company's financial strength is.

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

STJ's Interest Coverage is not ranked ^*
in the Medical Devices & Instruments industry.
Industry Median: 18.745
* Ranked among companies with meaningful Interest Coverage only.

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

St Jude Medical Interest Coverage Historical Data

The historical data trend for St Jude Medical'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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St Jude Medical Interest Coverage Chart

St Jude Medical Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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15.93

15.07

12.98

13.54

10.00

St Jude Medical Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Interest Coverage	Get a 7-Day Free Trial															13.36	2.43	5.70	7.83	7.33

Competitive Comparison of St Jude Medical's Interest Coverage

For the Medical Devices subindustry, St Jude Medical'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.

St Jude Medical's Interest Coverage Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, St Jude Medical's Interest Coverage distribution charts can be found below:

* The bar in red indicates where St Jude Medical's Interest Coverage falls into.

St Jude Medical 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.

St Jude Medical's Interest Coverage for the fiscal year that ended in Dec. 2015 is calculated as

Here, for the fiscal year that ended in Dec. 2015, St Jude Medical's Interest Expense was $-103 Mil. Its Operating Income was $1,030 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,229 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	1030	/	-103
	=	10.00

St Jude Medical's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Here, for the three months ended in Sep. 2016, St Jude Medical's Interest Expense was $-39 Mil. Its Operating Income was $286 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,403 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2016 )	/	Interest Expense (Q: Sep. 2016 )
	=	-1	*	286	/	-39
	=	7.33

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

St Jude Medical (NYSE:STJ) 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 .

St Jude Medical Interest Coverage Related Terms

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

St Jude Medical (St Jude Medical) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » St Jude Medical Inc (NYSE:STJ) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.sjm.com

St Jude Medical Inc was incorporated in Minnesota in 1976. It develops, manufactures and distributes cardiovascular medical devices for the cardiac rhythm management, cardiovascular and atrial fibrillation therapy areas and neurostimulation medical devices for the management of chronic pain. The Company's two segments are the Implantable Electronic Systems Division and the Cardiovascular and Ablation Technologies Division. The Company's principal products in each business unit are as follows: Implantable Electronic Systems Division (IESD) - tachycardia implantable cardioverter defibrillator systems (ICDs), bradycardia pacemaker systems (pacemakers) and neurostimulation products (spinal cord and deep brain stimulation devices); and Cardiovascular and Ablation Technologies Division (CATD) - vascular products (vascular closure products, pressure measurement guidewires, optical coherence tomography (OCT) imaging products, vascular plugs and other vascular accessories), structural heart products (heart valve replacement and repair products and structural heart defect devices) and atrial fibrillation (AF) products (electrophysiology (EP) introducers and catheters, cardiac mapping, navigation and recording systems and ablation systems). Implantable Electronic Systems Division (IESD): IESD is focused on the cardiac rhythm management and neuromodulation therapy areas. Cardiac rhythm management devices include ICDs that provide life-saving therapy to patients suffering from lethal heart conditions, such as sudden cardiac arrest; cardiac resynchronization therapy (CRT) devices to save and improve the lives of patients suffering from heart failure (HF); pacemakers to help patients whose hearts beat too slowly or who suffer from other debilitating cardiac arrhythmias; leads (wires that connect devices to the heart) to carry electrical impulses to the heart and provide information from the heart to the device; and programmers and remote monitoring equipment which are used by physicians and healthcare professionals to program is cardiac rhythm management devices and analyze device data to improve patient management. Neuromodulation product offerings provide neurostimulation treatment in which an implantable device delivers electrical current directly to targeted nerve sites. The Company's commercialized neurostimulation therapies include spinal cord stimulation (SCS) for the treatment of chronic pain, deep brain stimulation (DBS) for treating the symptoms of Parkinson's disease and peripheral nerve stimulation (PNS) for the treatment of chronic migraine headache. A neurostimulation system typically consists of four components: a pulse generator that produces the electrical current and is implanted under the patient's skin; implanted leads that carry the electrical impulses to the targeted nerve sites; an external patient remote control that enables the patient to control his or her therapy within prescribed ranges; and an external clinician pro

Executives

Jeff Fecho	officer: VP, Global Quality	ONE ST. JUDE MEDICAL DRIVE ST. PAUL MN 55117
Philip Ebeling	officer: VP, Chief Technology Officer	INSPIRE MEDICAL SYSTEMS, INC., 5500 WAYZATA BLVD., SUITE 1600, GOLDEN VALLEY MN 55416
Donald Zurbay	officer: VP Finance and CFO	C/O ST. JUDE MEDICAL, INC., ONE ST JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Michael A Rocca	director	C/O LIGAND PHARMACEUTICALS INCORPORATED, 10275 SCIENCE CENTER DRIVE, SAN DIEGO CA 92121
Barbara B Hill	director
Wendy L Yarno	director
Stuart Essig	director	311 C ENTERPRISE DRIVE, PLAINSBORO NJ 08536
John C Heinmiller	officer: Executive Vice President	ONE ST JUDE MEDICAL DRIVE, ST. PAUL MN 55117
John W Brown	director	STRYKER CORP, 2725 FAIRFIELD ROAD, KALAMAZOO MI 49002
David C Dvorak	director	C/O ZIMMER INC, PO BOX 708, WARSAW IN 46580
Michael T Rousseau	director, officer: Director, President and CEO	ONE ST JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Eric S Fain	officer: Group President	ONE ST JUDE MEDICAL DRIVE, ST. PAUL MN MN
Daniel J Starks	director	ONE ST JUDE MEDICAL DRIVE, ST PAUL MN 55117
Joel Becker	officer: President, Americas	ONE ST. JUDE MEDICAL DRIVE, ST. PAUL MN 55418
Rohan Hoare	officer: President - NMD	100 CYBERONICS BLVD, HOUSTON TX 77058