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Herbalife Nutrition Interest Coverage

: 4.69 (As of Jun. 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. Herbalife Nutrition's Operating Income for the three months ended in Jun. 2022 was $156 Mil. Herbalife Nutrition's Interest Expense for the three months ended in Jun. 2022 was $-33 Mil. Herbalife Nutrition's interest coverage for the quarter that ended in Jun. 2022 was 4.69. 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:

HLF' s Interest Coverage Range Over the Past 10 Years
Min: 3.71   Med: 4.81   Max: 39.6
Current: 4.13


HLF's Interest Coverage is ranked worse than
73.9% of 1314 companies
in the Consumer Packaged Goods industry
Industry Median: 11.36 vs HLF: 4.13

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 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 3.84 3.77 3.71 4.82 4.79

Herbalife Nutrition Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 6.29 4.88 2.24 4.88 4.69

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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Herbalife Nutrition's Interest Expense was $-153 Mil. Its Operating Income was $734 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,934 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*734.1/-153.1
=4.79

Herbalife Nutrition's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Herbalife Nutrition's Interest Expense was $-33 Mil. Its Operating Income was $156 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,977 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*155.8/-33.2
=4.69

* 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
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
Del Genes Celine director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Mulligan Donal L director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Jones Kevin M. director 1 FANATICAL PLACE CITY OF WINDCREST SAN ANTONIO TX 78218
L'helias Sophie director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: Principal Accounting Officer 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Agwunobi John O officer: Co-President/Chief H&N Officer 4800 NORTH SCOTTSDALE ROAD SCOTTSDALE AZ 85251
Wang Henry C officer: EVP, General Counsel 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
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
Lefevre Alan W director HERBALIFE NUTRITION 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Mendoza Juan Miguel director 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Guo Woody officer: SVP, Managing Director, China 800 W. OLYMPIC BLVD., SUITE #406 LOS ANGELES CA 90015
Amezquita Alexander officer: SVP, Finance & Strat. Planning 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Schissel Mark J officer: EVP, WW Operations 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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