International Flavors & Fragrances (LTS:0RF3) Interest Coverage : 2.14 (As of Dec. 2023)

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What is International Flavors & Fragrances 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. International Flavors & Fragrances's Operating Income for the three months ended in Dec. 2023 was €84 Mil. International Flavors & Fragrances's Interest Expense for the three months ended in Dec. 2023 was €-39 Mil. International Flavors & Fragrances's interest coverage for the quarter that ended in Dec. 2023 was 2.14. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for International Flavors & Fragrances's Interest Coverage or its related term are showing as below:

LTS:0RF3' s Interest Coverage Range Over the Past 10 Years
Min: 1.52 Med: 4.76 Max: 12.94
Current: 1.52

LTS:0RF3's Interest Coverage is ranked worse than
90.45% of 1194 companies
in the Chemicals industry
Industry Median: 9.845 vs LTS:0RF3: 1.52

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

International Flavors & Fragrances Interest Coverage Historical Data

The historical data trend for International Flavors & Fragrances'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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International Flavors & Fragrances Interest Coverage Chart

International Flavors & Fragrances Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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5.06

4.45

2.16

3.13

1.52

International Flavors & Fragrances 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															1.07	1.60	1.34	1.39	2.14

Competitive Comparison of International Flavors & Fragrances's Interest Coverage

For the Specialty Chemicals subindustry, International Flavors & Fragrances'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.

International Flavors & Fragrances's Interest Coverage Distribution in the Chemicals Industry

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

* The bar in red indicates where International Flavors & Fragrances's Interest Coverage falls into.

International Flavors & Fragrances 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.

International Flavors & Fragrances'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, International Flavors & Fragrances's Interest Expense was €-348 Mil. Its Operating Income was €530 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,012 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	530.026	/	-348.46
	=	1.52

International Flavors & Fragrances's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, International Flavors & Fragrances's Interest Expense was €-39 Mil. Its Operating Income was €84 Mil. And its Long-Term Debt & Capital Lease Obligation was €9,012 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	84.364	/	-39.431
	=	2.14

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

International Flavors & Fragrances (LTS:0RF3) 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 .

International Flavors & Fragrances Interest Coverage Related Terms

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

International Flavors & Fragrances (LTS:0RF3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » International Flavors & Fragrances Inc (LTS:0RF3) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IFF:USA IFF:Germany I1FF34:Brazil I1CE34:Brazil IFF:Austria IFF:Argentina

Address

521 West 57th Street, New York, NY, USA, 10019-2960

Website

https://www.iff.com

International Flavors & Fragrances is the largest specialty ingredients producer globally. The company sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.

International Flavors & Fragrances (LTS:0RF3) Headlines

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