Conagra Brands (Conagra Brands) Interest Coverage

: 4.36 (As of Feb. 2024)

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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. Conagra Brands's Operating Income for the three months ended in Feb. 2024 was $470 Mil. Conagra Brands's Interest Expense for the three months ended in Feb. 2024 was $-108 Mil. Conagra Brands's interest coverage for the quarter that ended in Feb. 2024 was 4.36. The higher the ratio, the stronger the company's financial strength is.

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

CAG' s Interest Coverage Range Over the Past 10 Years
Min: 1.36 Med: 3.04 Max: 5.87
Current: 3.35

CAG's Interest Coverage is ranked worse than
71.31% of 1377 companies
in the Consumer Packaged Goods industry
Industry Median: 8.37 vs CAG: 3.35

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

Conagra Brands Interest Coverage Historical Data

The historical data trend for Conagra Brands'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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Conagra Brands Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

3.05

2.97

4.34

3.70

2.66

Conagra Brands Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage																4.71	0.58	4.56	3.93	4.36

Competitive Comparison

For the Packaged Foods subindustry, Conagra Brands'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.

Conagra Brands Interest Coverage Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Conagra Brands's Interest Coverage distribution charts can be found below:

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

Conagra Brands 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.

Conagra Brands's Interest Coverage for the fiscal year that ended in May. 2023 is calculated as

Here, for the fiscal year that ended in May. 2023, Conagra Brands's Interest Expense was $-414 Mil. Its Operating Income was $1,100 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,268 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	1099.5	/	-413.5
	=	2.66

Conagra Brands's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Conagra Brands's Interest Expense was $-108 Mil. Its Operating Income was $470 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,492 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Feb. 2024 )	/	Interest Expense (Q: Feb. 2024 )
	=	-1	*	470	/	-107.9
	=	4.36

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

Conagra Brands (NYSE:CAG) 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 .

Conagra Brands Interest Coverage Related Terms

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

Conagra Brands (Conagra Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Conagra Brands Inc (NYSE:CAG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CAO:Germany CAO:Germany

Address

222 W. Merchandise Mart Plaza, Suite 1300, Chicago, IL, USA, 60654

Website

https://www.conagrabrands.com

Conagra Brands is a packaged food company that operates predominantly in the United States (over 90% of revenue and profits). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, Wish-Bone, and Chef Boyardee. The company primarily sells through the U.S. retail channel, with just 8% of fiscal 2023 revenue coming from international markets and 9% from foodservice.

Executives

Richard H Lenny	director	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Francisco Fraga	director	222 MERCHANDISE MART PLAZA, SUITE 1300, CHICAGO IL 60654
Thomas M Mcgough	officer: EVP and Co-COO	C/O CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS 1-330, OMAHA NE 68102
William Eric Johnson	officer: SVP, Corporate Controller	222 MERCHANDISE MART PLAZA, SUITE 1300, CHICAGO IL 60654
Charisse Brock	officer: EVP, Chief HR Officer	C/CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS1-330, OMAHA NE 68102
Robert G Wise	officer: SVP, Corporate Controller	C/O CONAGRA FOODS, INC., ONE CONAGRA DRIVE, OMAHA NE 68102
Carey Bartell	officer: EVP, GC and Corp. Secretary	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE. 1300, CHICAGO IL 60654
Denise Paulonis	director	8000 BENT BRANCH DRIVE, IRVING TX 75063
Emanuel Chirico	director	7 NEW YORK PLACE, BRONSVILLE NY 10708
Batcheler Colleen	officer: SVP and General Counsel	ONE CONAGRA DRIVE, OMAHA NE 68102
Darren Serrao	officer: EVP and Co-COO	C/CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS1-330, OMAHA NE 68102
George Dowdie	director	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE 1300, CHICAGO IL 60654
Fran Horowitz-bonadies	director	6301 FITCH PATH, NEW ALBANY OH 43054
Alexandre Eboli	officer: EVP,Chief Supply Chain Officer	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE. 1300, CHICAGO IL 60654
Jana Partners Llc	director, other: See Remarks	767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153