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Herbalife Nutrition Interest Coverage

: 6.29 (As of Jun. 2021)
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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. Herbalife Nutrition's Operating Income for the three months ended in Jun. 2021 was $238 Mil. Herbalife Nutrition's Interest Expense for the three months ended in Jun. 2021 was $-38 Mil. Herbalife Nutrition's interest coverage for the quarter that ended in Jun. 2021 was 6.29. The higher the ratio, the stronger the company's financial strength is.

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

NYSE:HLF' s Interest Coverage Range Over the Past 10 Years
Min: 3.71   Med: 5.21   Max: 57
Current: 5.43

3.71
57

NYSE:HLF's Interest Coverage is ranked lower than
89% of the 121 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 8.70 vs. NYSE:HLF: 5.43 )

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


Herbalife Nutrition Interest Coverage Historical Data

The historical data trend for Herbalife Nutrition'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.

Herbalife Nutrition Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.61 3.84 3.77 3.71 4.82

Herbalife Nutrition Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 6.22 5.59 4.05 5.72 6.29

Competitive Comparison

For the Packaged Foods subindustry, Herbalife Nutrition'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.

   

Herbalife Nutrition Interest Coverage Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Herbalife Nutrition's Interest Coverage distribution charts can be found below:

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



Herbalife Nutrition 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.

Herbalife Nutrition's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Herbalife Nutrition's Interest Expense was $-133 Mil. Its Operating Income was $641 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,612 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*640.6/-133
=4.82

Herbalife Nutrition's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Herbalife Nutrition's Interest Expense was $-38 Mil. Its Operating Income was $238 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,963 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*237.9/-37.8
=6.29

* 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.


Herbalife Nutrition  (NYSE:HLF) 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 .


Herbalife Nutrition Interest Coverage Related Terms

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


Herbalife Nutrition Business Description

Herbalife Nutrition logo
Industry
Traded in Other Exchanges
Address
Ugland House, South Church Street, P.O. Box 309GT, Grand Cayman, CYM
Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Executives
Nelson James Larry director 2747 PARADISE ROAD PH2804 LAS VEGAS NV 89109
Carmona Richard H director 1221 BROADWAY OAKLAND CA 94612
Icahn Carl C 10 percent owner C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH-1 SUNNY ISLES BEACH FL 33160
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Desimone John officer: President 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: SVP, PAO 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Tartol John director C/O HERBALIFE INTERNATIONAL, INC. 1800 CENTURY PARK EAST LOS ANGELES CA 90025
Christodoro Jonathan director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Graziano Nick director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105
Montelongo Michael director 203 EAST MAIN STREET SPARTANBURG SC 29319
Gary Hunter Clark director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Otero Maria director 800 W OLYMPIC BLVD SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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