Herbalife (Herbalife) Interest Coverage

: 1.35 (As of Dec. 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. Herbalife's Operating Income for the three months ended in Dec. 2023 was $56 Mil. Herbalife's Interest Expense for the three months ended in Dec. 2023 was $-41 Mil. Herbalife's interest coverage for the quarter that ended in Dec. 2023 was 1.35. The higher the ratio, the stronger the company's financial strength is.

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

HLF' s Interest Coverage Range Over the Past 10 Years
Min: 2.15 Med: 4.26 Max: 5.81
Current: 2.15

HLF's Interest Coverage is ranked worse than
81.63% of 1377 companies
in the Consumer Packaged Goods industry
Industry Median: 8.37 vs HLF: 2.15

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 Interest Coverage Historical Data

The historical data trend for Herbalife'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.

* Premium members only.

Herbalife Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.71

4.82

4.79

3.91

2.15

Herbalife Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Take a 7-Day Free Trial															2.29	1.69	3.00	2.56	1.35

Competitive Comparison

For the Packaged Foods subindustry, Herbalife'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 Interest Coverage Distribution

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

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

Herbalife 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.

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

Here, for the fiscal year that ended in Dec. 2023, Herbalife's Interest Expense was $-166 Mil. Its Operating Income was $356 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,421 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	356.4	/	-165.9
	=	2.15

Herbalife's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Herbalife's Interest Expense was $-41 Mil. Its Operating Income was $56 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,421 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	55.8	/	-41.3
	=	1.35

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

Herbalife (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 Interest Coverage Related Terms

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

Herbalife (Herbalife) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Herbalife Ltd (NYSE:HLF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HOO:Germany

Address

Ugland House, P.O. Box 309, Grand Cayman, CYM, KY1-1104

Website

https://www.herbalife.com

Herbalife Ltd is an international nutrition company that provides health and wellness products to consumers in 95 markets, which consists of countries and territories, through their direct-selling business model. Companies' products are weight management; targeted nutrition; Energy, Sports, and Fitness; Outer Nutrition and Literature, Promotional, and Other. Weight management generates the majority of revenue from products like Meal replacement, protein shakes, drink mixes, weight loss enhancers, and healthy snacks. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.

Executives

Rodica Macadrai	director	800 W. OLYMPIC BLVD., SUITE 406, LOS ANGELES CA 90015
Ibelis Fleming	officer: SVP/Managing Dir North America	800 W. OLYMPIC BLVD., SUITE 406, LOS ANGELES X1 90015
Stephan Paulo Gratziani	director	800 W. OLYMPIC BLVD., SUITE 406, LOS ANGELES CA 90015
Donal L Mulligan	director	ONE GENERAL MILLS BLVD, MINNEAPOLIS MN 55426
Sophie L'helias	director	800 WEST OLYMPIC BLVD., SUITE 406, LOS ANGELES CA 90015
John Tartol	director	C/O HERBALIFE INTERNATIONAL, INC., 1800 CENTURY PARK EAST, LOS ANGELES CA 90025
Alan W Lefevre	director	HERBALIFE NUTRITION, 800 W. OLYMPIC BLVD. SUITE 406, LOS ANGELES CA 90015
Henry C Wang	officer: EVP, General Counsel	800 W. OLYMPIC BLVD. SUITE 406, LOS ANGELES CA 90015
Michael Johnson	officer: Chief Executive Officer	C/O HERBALIFE INTERNATIONAL, INC., 1800 CENTURY PARK EAST, LOS ANGELES CA 90067
Windacre Partnership Master Fund, Lp	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Windacre Partnership Llc	10 percent owner	2200 POST OAK BOULEVARD, SUITE 1580, HOUSTON TX 77056
Snehal Amin	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOU TX 77056
Wapgp Llc	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Windacre General Partner Lp	10 percent owner	2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Alan L Hoffman	officer: EVP, Global Corporate Affairs	800 W. OLYMPIC BLVD., SUITE 406, LOS ANGELES CA 90015