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Becton, Dickinson and Co Interest Coverage

: 3.31 (As of Mar. 2020)
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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. Becton, Dickinson and Co's Operating Income for the three months ended in Mar. 2020 was $444 Mil. Becton, Dickinson and Co's Interest Expense for the three months ended in Mar. 2020 was $-134 Mil. Becton, Dickinson and Co's interest coverage for the quarter that ended in Mar. 2020 was 3.31. The higher the ratio, the stronger the company's financial strength is.

NYSE:BDX' s Interest Coverage Range Over the Past 10 Years
Min: 3.17   Med: 7.33   Max: 30.87
Current: 3.62
3.17
30.87

NYSE:BDX's Interest Coverage is ranked lower than
80% of the 313 Companies
in the Medical Devices & Instruments industry.

( Industry Median: 16.47 vs. NYSE:BDX: 3.62 )

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

Becton, Dickinson and Co Interest Coverage Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Becton, Dickinson and Co Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.04 5.56 3.52 3.17 3.50

Becton, Dickinson and Co Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 4.59 2.18 4.32 3.31
Competitive Comparison
* 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.

Becton, Dickinson and Co Interest Coverage Distribution

* The bar in red indicates where Becton, Dickinson and Co's Interest Coverage falls into.


Becton, Dickinson and Co 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.


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

Becton, Dickinson and Co's Interest Coverage for the fiscal year that ended in Sep. 2019 is calculated as

Here, for the fiscal year that ended in Sep. 2019, Becton, Dickinson and Co's Interest Expense was $-639 Mil. Its Operating Income was $2,238 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,081 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2019 )/Interest Expense (A: Sep. 2019 )
=-1*2238/-639
=3.50

Becton, Dickinson and Co's Interest Coverage for the quarter that ended in Mar. 2020 is calculated as

Here, for the three months ended in Mar. 2020, Becton, Dickinson and Co's Interest Expense was $-134 Mil. Its Operating Income was $444 Mil. And its Long-Term Debt & Capital Lease Obligation was $16,809 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2020 )/Interest Expense (Q: Mar. 2020 )
=-1*444/-134
=3.31

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

Becton, Dickinson and Co  (NYSE:BDX) 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 .

Becton, Dickinson and Co Interest Coverage Related Terms

Becton, Dickinson and Co Interest Coverage Headlines

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