Kraton (Kraton) Interest Coverage : 5.75 (As of Dec. 2021)

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What is Kraton 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. Kraton's Operating Income for the three months ended in Dec. 2021 was $60 Mil. Kraton's Interest Expense for the three months ended in Dec. 2021 was $-10 Mil. Kraton's interest coverage for the quarter that ended in Dec. 2021 was 5.75. The higher the ratio, the stronger the company's financial strength is.

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

KRA' s Interest Coverage Range Over the Past 10 Years
Min: 0.75 Med: 1.23 Max: 6.16
Current: 6.16

KRA's Interest Coverage is not ranked
in the Chemicals industry.
Industry Median: 9.88 vs KRA: 6.16

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

Kraton Interest Coverage Historical Data

The historical data trend for Kraton'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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Kraton Interest Coverage Chart

Kraton Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Interest Coverage

Get a 7-Day Free Trial

1.56

2.60

1.15

1.19

6.16

Kraton Quarterly Data
	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
Interest Coverage	Get a 7-Day Free Trial															2.59	4.90	6.15	7.98	5.75

Competitive Comparison of Kraton's Interest Coverage

For the Specialty Chemicals subindustry, Kraton'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.

Kraton's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Kraton's Interest Coverage distribution charts can be found below:

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

Kraton 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.

Kraton's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Kraton's Interest Expense was $-42 Mil. Its Operating Income was $258 Mil. And its Long-Term Debt & Capital Lease Obligation was $897 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2021 )	/	Interest Expense (A: Dec. 2021 )
	=	-1	*	257.708	/	-41.84
	=	6.16

Kraton's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the three months ended in Dec. 2021, Kraton's Interest Expense was $-10 Mil. Its Operating Income was $60 Mil. And its Long-Term Debt & Capital Lease Obligation was $897 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2021 )	/	Interest Expense (Q: Dec. 2021 )
	=	-1	*	60.27	/	-10.487
	=	5.75

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

Kraton (NYSE:KRA) 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 .

Kraton Interest Coverage Related Terms

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

Kraton (Kraton) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Kraton Corp (NYSE:KRA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

15710 John F. Kennedy Boulevard, Suite 300, Houston, TX, USA, 77032

Website

http://www.kraton.com

Kraton Corp is a specialty chemicals company that primarily manufactures elastomers and synthetic replacements for rubber. The company's operating segments include polymer and chemical. It generates a majority revenue from the polymer segment. The polymer segment is composed of styrenic block copolymers (SBCs) and other engineered polymers business. The firm's chemical segment is composed of its pine-based specialty products business. It is a geographically diverse company, oprating in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The company's products are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving and roofing, and footwear products.

Executives

Kevin Michael Fogarty	director, officer: President and CEO	30 GRAND GARDEN COURT, THE WOODLANDS TX 77381
Vijay Mhetar	officer: SVP, Chief Technology Officer	15710 JOHN F. KENNEDY BLVD., SUITE 300 HOUSTON TX 77032
Marcello C Boldrini	officer: SVP & Chemical Seg. President	15710 JOHN F. KENNEDY BLVD. SUITE 300 HOUSTON TX 77032
Chris H. Russell	officer: VP, Chief Accounting Officer	15710 JOHN F. KENNEDY BLVD., SUITE 300, HOUSOTN TX 77032
James Leo Simmons	officer: SVP, General Counsel & Sec.	15710 JOHN F. KENNEDY BLVD. SUITE 300 HOUSTON TX 77032
Mark Santangelo	officer: SVP, Global Operations	15710 JOHN F. KENNEDY BLVD., SUITE 300 HOUSTON TX 77032
Atanas H Atanasov	officer: SVP, CFO and Treasurer	C/O NGL ENERGY PARTNERS LP, 6120 S. YALE AVENUE, SUITE 805, TULSA OK 74136
Haddad Jose Fernando Cherubini	other: Former SVP, Global Operations	15710 JOHN F KENNEDY BLVD SUITE 300 HOUSTON TX 77032
Heba Botros	other: Former VP, Corp. Dev.	15710 JOHN F. KENNEDY BLVD. SUITE 300 HOUSTON TX 77032
Holger R. Jung	officer: SVP & Polymer Seg. President	15710 JOHN F. KENNEDY BLVD. SUITE 300 HOUSTON TX 77032
Suzanna Pesgens	officer: VP, Chief Procurement Officer	15710 JOHN F. KENNEDY BLVD.,SUITE 300 HOUSTON TX 77004
Melinda Scissors Conley	officer: SVP & Chief HR Officer	15710 JFK BOULEVARD, SUITE 300 HOUSTON TX 77032
Shelley J Bausch	director	15710 JOHN F. KENNEDY BLVD., SUITE 300, HOUSTON TX 77032
Billie Ida Williamson	director	151 DETROIT STREET, DENVER CO 80206
Dan F Smith	director	1221 MCKINNEY STREET, SUITE 700, HOUSTON TX 77010