Kraft Foods Group (LTS:0R3B) Interest Coverage : 5.09 (As of Dec. 2023)

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Kraft Foods Group Interest Coverage Definition

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. Kraft Foods Group's Operating Income for the three months ended in Dec. 2023 was CHF1,007 Mil. Kraft Foods Group's Interest Expense for the three months ended in Dec. 2023 was CHF-198 Mil. Kraft Foods Group's interest coverage for the quarter that ended in Dec. 2023 was 5.09. The higher the ratio, the stronger the company's financial strength is.

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

LTS:0R3B' s Interest Coverage Range Over the Past 10 Years
Min: 2 Med: 4.3 Max: 5.67
Current: 5.67

LTS:0R3B's Interest Coverage is ranked worse than
58% of 1381 companies
in the Consumer Packaged Goods industry
Industry Median: 8.34 vs LTS:0R3B: 5.67

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

Kraft Foods Group Interest Coverage Historical Data

The historical data trend for Kraft Foods Group'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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Kraft Foods Group Interest Coverage Chart

Kraft Foods Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.78

4.11

2.59

5.08

5.67

Kraft Foods Group 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															5.72	5.57	6.14	5.86	5.09

Competitive Comparison of Kraft Foods Group's Interest Coverage

For the Packaged Foods subindustry, Kraft Foods Group'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.

Kraft Foods Group Interest Coverage Distribution

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

* The bar in red indicates where Kraft Foods Group's Interest Coverage falls into.

Kraft Foods Group 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.

Kraft Foods Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Kraft Foods Group's Interest Expense was CHF-789 Mil. Its Operating Income was CHF4,468 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF16,772 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4468.422	/	-788.698
	=	5.67

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

Here, for the three months ended in Dec. 2023, Kraft Foods Group's Interest Expense was CHF-198 Mil. Its Operating Income was CHF1,007 Mil. And its Long-Term Debt & Capital Lease Obligation was CHF16,772 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1007.492	/	-198.039
	=	5.09

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

Kraft Foods Group (LTS:0R3B) 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 .

Kraft Foods Group Interest Coverage Related Terms

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

Kraft Foods Group (LTS:0R3B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Kraft Foods Group Inc (LTS:0R3B) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KHC:USA KHC:Peru KHC:Mexico 1KHC:Italy KHNZd:UK 0JRV:UK KHNZ:Germany KHCB34:Brazil KHC:Austria

Address

One PPG Place, Pittsburgh, PA, USA, 15222

Website

https://www.kraftheinzcompany.com

In July 2015, Kraft merged with Heinz to create the third-largest food and beverage manufacturer in North America behind PepsiCo and Nestle and the fifth-largest player in the world. Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm operates a growing presence in the foodservice arena. Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives 20%-25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.

Kraft Foods Group (LTS:0R3B) Headlines

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