Albertsons (Albertsons) Interest Coverage

: 5.07 (As of Nov. 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. Albertsons's Operating Income for the three months ended in Nov. 2023 was $590 Mil. Albertsons's Interest Expense for the three months ended in Nov. 2023 was $-116 Mil. Albertsons's interest coverage for the quarter that ended in Nov. 2023 was 5.07. The higher the ratio, the stronger the company's financial strength is.

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

ACI' s Interest Coverage Range Over the Past 10 Years
Min: 0.19 Med: 1.09 Max: 5.25
Current: 3.91

ACI's Interest Coverage is ranked worse than
69.8% of 255 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs ACI: 3.91

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

Albertsons Interest Coverage Historical Data

The historical data trend for Albertsons'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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Albertsons Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Interest Coverage

0.78

1.40

2.96

5.25

4.73

Albertsons Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Interest Coverage																7.00	2.60	4.19	3.99	5.07

Competitive Comparison

For the Grocery Stores subindustry, Albertsons'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.

Albertsons Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Interest Coverage distribution charts can be found below:

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

Albertsons 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.

Albertsons's Interest Coverage for the fiscal year that ended in Feb. 2023 is calculated as

Here, for the fiscal year that ended in Feb. 2023, Albertsons's Interest Expense was $-456 Mil. Its Operating Income was $2,160 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,221 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Feb. 2023 )	/	Interest Expense (A: Feb. 2023 )
	=	-1	*	2159.6	/	-456.3
	=	4.73

Albertsons's Interest Coverage for the quarter that ended in Nov. 2023 is calculated as

Here, for the three months ended in Nov. 2023, Albertsons's Interest Expense was $-116 Mil. Its Operating Income was $590 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,311 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Nov. 2023 )	/	Interest Expense (Q: Nov. 2023 )
	=	-1	*	590	/	-116.3
	=	5.07

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

Albertsons (NYSE:ACI) 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 .

Albertsons Interest Coverage Related Terms

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

Albertsons (Albertsons) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Albertsons Companies Inc (NYSE:ACI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

27S:Germany 27S:Germany

Address

250 Parkcenter Boulevard, Boise, ID, USA, 83706

Website

https://www.albertsonscompanies.com

Albertsons is the second-largest conventional grocer in America, operating 2,271 stores under 24 banners in 34 states (as of the end of fiscal 2022). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 25% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 19 food production plants (as of the end of fiscal 2022). Albertsons is a top two grocer in two thirds of its major markets (as of early 2022, according to company data), and virtually all of its sales come from the United States. Narrow-moat Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.

Executives

Thomas M Moriarty	officer: EVP General Counsel & CPO	100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417
Robert Bruce Larson	officer: Chief Accounting Officer	3103 S OLD HICKORY, BOISE ID 83712
Klaff Realty Lp	10 percent owner, other: See Remarks	180 N. MICHIGAN AVE, SUITE 300, CHICAGO IL 60601
Mohammad Omer Gajial	officer: EVP, Pharmacy & Health	250 E. PARKCENTER BLVD., BOISE ID 83706
Jubilee Abs Holding Llc	other: See Footnote (2)	4300 E. FIFTH AVE., COLUMBUS OH 43219
Kimco Realty Corp	other: See Remarks	500 NORTH BROADWAY, SUITE 201, JERICHO NY 11753
Susan Morris	officer: See Remarks	ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Evan Rainwater	officer: EVP, Supp Chain&Manufacturing	250 E. PARKCENTER BLVD., BOISE ID 83706
Chris Rupp	officer: See Remarks	ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Anuj Dhanda	officer: See Remarks	ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Sharon Mccollam	officer: President & CFO	C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Jennifer Saenz	officer: Chief Marketing Officer	250 E. PARKCENTER BLVD., BOISE ID 83706
Chan Galbato	director	191 E NORTH AVENUE, CAROL STREAM IL 60188
Stone West Mary E	director	C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Shant Babikian	director	C/O HPS INVESTMENT PARTNERS, LLC, 40 WEST 57TH STREET, 33RD FLOO NY 10019