Cencora (Cencora) Interest Coverage : 13.64 (As of Dec. 2023)

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What is Cencora 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. Cencora's Operating Income for the three months ended in Dec. 2023 was $799 Mil. Cencora's Interest Expense for the three months ended in Dec. 2023 was $-59 Mil. Cencora's interest coverage for the quarter that ended in Dec. 2023 was 13.64. The higher the ratio, the stronger the company's financial strength is.

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

COR' s Interest Coverage Range Over the Past 10 Years
Min: 9.66 Med: 12.68 Max: 16.34
Current: 10.25

COR's Interest Coverage is ranked better than
51.28% of 78 companies
in the Medical Distribution industry
Industry Median: 9.955 vs COR: 10.25

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

Cencora Interest Coverage Historical Data

The historical data trend for Cencora'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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Cencora Interest Coverage Chart

Cencora Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

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12.76

14.75

16.34

11.87

9.74

Cencora Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															11.23	10.14	10.02	7.87	13.64

Competitive Comparison of Cencora's Interest Coverage

For the Medical Distribution subindustry, Cencora'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.

Cencora's Interest Coverage Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Cencora's Interest Coverage distribution charts can be found below:

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

Cencora 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.

Cencora's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Cencora's Interest Expense was $-276 Mil. Its Operating Income was $2,686 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,146 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	2685.605	/	-275.65
	=	9.74

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

Here, for the three months ended in Dec. 2023, Cencora's Interest Expense was $-59 Mil. Its Operating Income was $799 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,186 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	799.462	/	-58.616
	=	13.64

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

Cencora (NYSE:COR) 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 .

Cencora Interest Coverage Related Terms

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

Cencora (Cencora) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Cencora Inc (NYSE:COR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ABG:Germany C1CO34:Brazil ABC:Austria

Address

1 West First Avenue, Conshohocken, PA, USA, 19428-1800

Website

https://www.cencora.com

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the U.S. pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.

Executives

Leslie E Donato	officer: EVP & Chief Strategy Officer	227 WASHINGTON STREET, CONSHOHOCKEN PA 19428
Elizabeth S Campbell	officer: Executive Vice President	1 WEST FIRST AVENUE, CONSHOHOCKEN PA 19428
Steven H Collis	officer: President & CEO	1300 MORRIS DRIVE, SUITE 100, CHESTERBROOK PA 19087
Lazarus Krikorian	officer: Senior Vice President	1300 MORRIS DRIVE, CHESTERBROOK PA 19087
Silvana Battaglia	officer: Executive Vice President	227 WASHINGTON STREET, CONSHOHOCKEN PA 19428
Walgreens Boots Alliance, Inc.	10 percent owner	108 WILMOT ROAD, DEERFIELD IL 60015
Gina Clark	officer: Executive Vice President	1300 MORRIS DRIVE, CHESTERBROOK PA 19087
Werner Baumann	director	1 WEST FIRST AVENUE, CONSHOHOCKEN PA 19428
Lauren M Tyler	director	C/O ALLEGHANY CORPORATION, 1411 BROADWAY, 34TH FLOOR, NEW YORK NY 10018
Robert P. Mauch	officer: Executive Vice President	1300 MORRIS DRIVE, CHESTERBROOK PA 19087
Redonda Miller	director	303 WYMAN STREET, SUITE 300, WALTHAM MA 02451
Lorence H. Kim	director	C/O SERES HEALTH, INC., 161 FIRST STREET, CAMBRIDGE MA 02472
Walgreens Boots Alliance Holdings Llc	10 percent owner	108 WILMOT ROAD, DEERFIELD IL 60015
Lon R Greenberg	director	460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406
John G. Chou	officer: Executive Vice President	1300 MORRIS DRIVE, CHESTERBROOK PA 19087