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Kellogg Co Interest Coverage

: 5.71 (As of Dec. 2019)
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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 (EBIT) by its Interest Expense. Kellogg Co's Operating Income for the three months ended in Dec. 2019 was $360 Mil. Kellogg Co's Interest Expense for the three months ended in Dec. 2019 was $-63 Mil. Kellogg Co's interest coverage for the quarter that ended in Dec. 2019 was 5.71. The higher the ratio, the stronger the company's financial strength is.

NYSE:K' s Interest Coverage Range Over the Past 10 Years
Min: 3.65   Max: 12.07
Current: 4.93

3.65
12.07

NYSE:K's Interest Coverage is ranked lower than
63% of the 1237 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 8.98 vs. NYSE:K: 4.93 )

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


Kellogg Co Interest Coverage Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Kellogg Co Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.81 3.65 5.42 5.94 4.93

Kellogg Co Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 4.41 5.15 5.29 3.65 5.71

Competitive Comparison
* 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.


Kellogg Co Interest Coverage Distribution

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



Kellogg 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.


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

Kellogg Co's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Kellogg Co's Interest Expense was $-284 Mil. Its Operating Income was $1,401 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,628 Mil.

Interest Coverage=-1*Operating Income (A: Dec. 2019 )/Interest Expense (A: Dec. 2019 )
=-1*1401/-284
=4.93

Kellogg Co's Interest Coverage for the quarter that ended in Dec. 2019 is calculated as

Here, for the three months ended in Dec. 2019, Kellogg Co's Interest Expense was $-63 Mil. Its Operating Income was $360 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,628 Mil.

Interest Coverage=-1*Operating Income (Q: Dec. 2019 )/Interest Expense (Q: Dec. 2019 )
=-1*360/-63
=5.71

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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


Kellogg Co  (NYSE:K) 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 .


Kellogg Co Interest Coverage Related Terms


Kellogg Co Interest Coverage Headlines

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