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Graco Interest Coverage

: 24.28 (As of Mar. 2022)
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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. Graco's Operating Income for the three months ended in Mar. 2022 was $128 Mil. Graco's Interest Expense for the three months ended in Mar. 2022 was $-5 Mil. Graco's interest coverage for the quarter that ended in Mar. 2022 was 24.28. The higher the ratio, the stronger the company's financial strength is.

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

GGG' s Interest Coverage Range Over the Past 10 Years
Min: 11.66   Med: 20.59   Max: 52.01
Current: 40.65


GGG's Interest Coverage is ranked better than
65.43% of 2161 companies
in the Industrial Products industry
Industry Median: 17.76 vs GGG: 40.65

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


Graco Interest Coverage Historical Data

The historical data trend for Graco'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.

* Premium members only.

Graco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.38 30.34 32.38 37.85 52.01

Graco Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 52.84 52.94 49.84 52.41 24.28

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Graco'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.

   

Graco Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Graco's Interest Coverage distribution charts can be found below:

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



Graco 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.

Graco's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Graco's Interest Expense was $-10 Mil. Its Operating Income was $531 Mil. And its Long-Term Debt & Capital Lease Obligation was $99 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*531.323/-10.215
=52.01

Graco's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Graco's Interest Expense was $-5 Mil. Its Operating Income was $128 Mil. And its Long-Term Debt & Capital Lease Obligation was $99 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*128.363/-5.287
=24.28

* 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.

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


Graco  (NYSE:GGG) 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 .


Graco Interest Coverage Related Terms

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


Graco Business Description

Graco logo
Industry
Industrials » Industrial Products NAICS : 333249 SIC : 3561
Traded in Other Exchanges
Address
88-11th Avenue Northeast, Minneapolis, MN, USA, 55413
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2 billion in sales and $531 million in operating income in 2021.
Executives
Zumbolo Brian J officer: President, Asia Pacific PO BOX 1441 MINNEAPOLIS MN 55440-1441
Gallivan Karen Park officer: Executive Vice President P O BOX 1441 MINNEAPOLIS MN 55440-1441
Wheeler Kevin J. director A. O. SMITH CORPORATION 500 TENNESSEE WALTZ PARKWAY ASHLAND CITY TN 37015
Van Sant R William director PO BOX 1441 MINNEAPOLIS MN 55440-1441
Eugster Jack W director PO BOX 1441 MINNEAPOLIS MN 55440-1441
Etchart Eric director ROOM F, 22F CROSS REGION PLAZA 899 LINGLING ROAD SHANGHAI F4 200030
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Morfitt Martha A M director P.O. BOX 1441 MINNEAPOLIS MN 55440-1441
Mitau Lee R director P O BOX 1441 MINNEAPOLIS MN 55440-1441
Feragen Jody H director 1 HORMEL PLACE AUSTIN TX 55912
Gilligan J Kevin director P O BOX 1441 MINNEAPOLIS MN 55440-1441
White Timothy R officer: President, White Knight, QED 88 11TH AVENUE NE MINNEAPOLIS MN 55413
Johnson Dale D officer: President, Worldwide CED P.O. BOX 1441 MINNEAPOLIS MN 5440-1441
Chambers Caroline M officer: President, EMEA PO BOX 1441 MINNEAPOLIS MN 55440-1441
Wordell Angela F officer: EVP, Operations, President ONG 88 11TH AVENUE NE MINNEAPOLIS MN 55413

Graco Headlines

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