Stericycle (Stericycle) Interest Coverage

: 2.18 (As of Dec. 2023)

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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. Stericycle's Operating Income for the three months ended in Dec. 2023 was $37.10 Mil. Stericycle's Interest Expense for the three months ended in Dec. 2023 was $-17.00 Mil. Stericycle's interest coverage for the quarter that ended in Dec. 2023 was 2.18. The higher the ratio, the stronger the company's financial strength is.

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

SRCLP.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.71 Med: 1.9 Max: 8.41
Current: 1.9

SRCLP.PFD's Interest Coverage is ranked worse than
84.8% of 171 companies
in the Waste Management industry
Industry Median: 5.33 vs SRCLP.PFD: 1.90

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

Stericycle Interest Coverage Historical Data

The historical data trend for Stericycle'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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Stericycle Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.01

1.90

0.98

1.83

1.90

Stericycle Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.08	2.21	1.58	1.63	2.18

Competitive Comparison

For the Waste Management subindustry, Stericycle'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.

Stericycle Interest Coverage Distribution

For the Waste Management industry and Industrials sector, Stericycle's Interest Coverage distribution charts can be found below:

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

Stericycle 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.

Stericycle'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, Stericycle's Interest Expense was $-73.90 Mil. Its Operating Income was $140.70 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,656.70 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	140.7	/	-73.9
	=	1.90

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

Here, for the three months ended in Dec. 2023, Stericycle's Interest Expense was $-17.00 Mil. Its Operating Income was $37.10 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,656.70 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	37.1	/	-17
	=	2.18

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

Stericycle (NAS:SRCLP.PFD) 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 .

Stericycle Interest Coverage Related Terms

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

Stericycle (Stericycle) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Stericycle Inc (NAS:SRCLP.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SRCL:USA

Address

2355 Waukegan Road, Bannockburn, IL, USA, 60015

Website

https://www.stericycle.com

Stericycle is the largest provider of medical waste disposal and data destruction (primarily paper shredding) services in the United States. Its next closest national competitor in the medical waste disposal space is Sharps Compliance, which generated $76 million of sales in fiscal 2021 before its 2022 acquisition (about 4% of Stericycle's global regulated waste and compliance revenue). Stericycle's data destruction business (Shred-It) is about twice the size of its closest competitor (Iron Mountain's information destruction segment). Stericycle has a global presence, with about 20% of its revenue earned outside North America.