Cal-Maine Foods (Cal-Maine Foods) Interest Coverage

: No Debt ⁽¹⁾ (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. Cal-Maine Foods's Operating Income for the three months ended in Feb. 2024 was $153 Mil. Cal-Maine Foods's Interest Expense for the three months ended in Feb. 2024 was $0 Mil. Cal-Maine Foods has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Cal-Maine Foods Inc has no debt.

(1) 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.

The historical rank and industry rank for Cal-Maine Foods's Interest Coverage or its related term are showing as below:

CALM' s Interest Coverage Range Over the Past 10 Years
Min: 2.71 Med: 222.62 Max: 1653.95
Current: 541.8

CALM's Interest Coverage is ranked better than
93.16% of 1375 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs CALM: 541.80

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

Cal-Maine Foods Interest Coverage Historical Data

The historical data trend for Cal-Maine Foods'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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Cal-Maine Foods Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Interest Coverage

71.14

2.71

343.49

1,653.95

Cal-Maine Foods Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Interest Coverage																No Debt	233.16	No Debt	No Debt	No Debt

Competitive Comparison

For the Farm Products subindustry, Cal-Maine Foods'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.

Cal-Maine Foods Interest Coverage Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Cal-Maine Foods's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cal-Maine Foods's Interest Coverage falls into.

Cal-Maine Foods 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.

Cal-Maine Foods'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, Cal-Maine Foods's Interest Expense was $-1 Mil. Its Operating Income was $964 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	Operating Income (A: May. 2023 )	/	Interest Expense (A: May. 2023 )
	=	-1	*	964.25	/	-0.583
	=	1,653.95

Cal-Maine Foods's Interest Coverage for the quarter that ended in Feb. 2024 is calculated as

Here, for the three months ended in Feb. 2024, Cal-Maine Foods's Interest Expense was $0 Mil. Its Operating Income was $153 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Cal-Maine Foods had no debt ⁽¹⁾.

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

Cal-Maine Foods (NAS:CALM) 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 .

Cal-Maine Foods Interest Coverage Related Terms

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

Cal-Maine Foods (Cal-Maine Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Cal-Maine Foods Inc (NAS:CALM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CM2:Germany CM2:Germany

Address

1052 Highland Colony Parkway, Suite 200, Ridgeland, MS, USA, 39157

Website

https://www.calmainefoods.com

Cal-Maine Foods Inc produces and sells shell eggs. Its main market is the United States. The company's product portfolio contains nutritionally enhanced, cage-free, organic, and brown eggs. Cal-Maine Foods markets the shell eggs to a diverse group of customers, including grocery-store chains, club stores, and food service distributors. The company's brands are Egg-Land's, Land O' Lakes, Farmhouse, and 4-Grain. The Company has one reportable operating segment, which is the production, grading, packaging, marketing and distribution of shell eggs.

Executives

Charles Jeff Hardin	officer: Vice President Marketing	3650 GUENTHER ROAD, LAGRANGE TX 78945
Michael Todd Walters	officer: COO	1052 HIGHLAND COLONY PKWY, RIDGELAND MS 39157
Letitia Callender Hughes	director	48 AVERY CIRCLE, JACKSON MS 39211
James E Poole	director	PO BOX 5167, JACKSON MS 39296
Matthew Samuel Glover	officer: Vice President - Accounting	1052 HIGHLAND COLONY PKWY, RIDGELAND MS 39157
Camille S Young	director	2992 WEST BEACH BLVD, GULFPORT MS 39501
Adolphus B Baker	director, 10 percent owner, officer: Chairman, President & CEO	P. O. BOX 2960, JACKSON MS 39207
Jean Morris Adams	10 percent owner	312 VIEWPOINTE PLACE, CLINTON MS 39056
Holladay Robert L Jr	officer: VP - General Counsel	3320 W. WOODROW WILSON AVE, JACKSON MS 39209
Max P Bowman	director, officer: Vice President, CFO, Sec/Treas	3320 W. WOODROW WILSON AVE., JACKSON MS 39209
Dlnl, Llc	10 percent owner	3320 W. WOODROW WILSON AVE., JACKSON MS 39209
Adams Fred R Jr	10 percent owner	C/O CM FOODS, PO BOX 2960, JACKSON MS 39207
Steve W Sanders	director	2 OAKLEIGH PLACE, JACKSON MS 39211
Michael D Castleberry	officer: Vice President, Controller	3320 W. WOODROW WILSON AVE, JACKSON MS 39209
Timothy A Dawson	director, officer: Vice President, CFO, Sec/Treas	CAL-MAINE FOODS, INC., PO BOX 2960, JACKSON MS 39207