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Monsanto Co (XSWX:MOO) Interest Coverage : 18.29 (As of Feb. 2018)


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What is Monsanto 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. Monsanto Co's Operating Income for the three months ended in Feb. 2018 was CHF1,796 Mil. Monsanto Co's Interest Expense for the three months ended in Feb. 2018 was CHF-98 Mil. Monsanto Co's interest coverage for the quarter that ended in Feb. 2018 was 18.29. The higher the ratio, the stronger the company's financial strength is.

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


XSWX:MOO's Interest Coverage is not ranked *
in the Agriculture industry.
Industry Median: 7.23
* 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.


Monsanto Co Interest Coverage Historical Data

The historical data trend for Monsanto 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.

Monsanto Co Interest Coverage Chart

Monsanto Co Annual Data
Trend Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.76 16.43 9.04 6.13 7.44

Monsanto Co Quarterly Data
May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18
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 18.76 11.80 - 2.15 18.29

Competitive Comparison of Monsanto Co's Interest Coverage

For the Agricultural Inputs subindustry, Monsanto 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.


Monsanto Co's Interest Coverage Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Monsanto Co's Interest Coverage distribution charts can be found below:

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



Monsanto 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.

Monsanto Co's Interest Coverage for the fiscal year that ended in Aug. 2017 is calculated as

Here, for the fiscal year that ended in Aug. 2017, Monsanto Co's Interest Expense was CHF-436 Mil. Its Operating Income was CHF3,244 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF7,002 Mil.

Interest Coverage=-1* Operating Income (A: Aug. 2017 )/Interest Expense (A: Aug. 2017 )
=-1*3244.373/-436.316
=7.44

Monsanto Co's Interest Coverage for the quarter that ended in Feb. 2018 is calculated as

Here, for the three months ended in Feb. 2018, Monsanto Co's Interest Expense was CHF-98 Mil. Its Operating Income was CHF1,796 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF6,207 Mil.

Interest Coverage=-1* Operating Income (Q: Feb. 2018 )/Interest Expense (Q: Feb. 2018 )
=-1*1796.16/-98.228
=18.29

* 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.


Monsanto Co  (XSWX:MOO) 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 .


Monsanto Co Interest Coverage Related Terms

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


Monsanto Co (XSWX:MOO) Business Description

Traded in Other Exchanges
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Address
Originally a chemical company, Monsanto has morphed into an agricultural giant, focusing on seeds and crop-protection products. In a major breakthrough, Monsanto introduced the first genetically modified crop seeds in 1996 and has remained the industry leader through new product development and licensing agreements. Monsanto continues to focus on bringing new biotechnology traits to market to improve farmer yields and productivity.