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Hormel Foods Interest Coverage

: 78.83 (As of Jul. 2019)
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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 (EBIT) by its Interest Expense. Hormel Foods's Operating Income for the three months ended in Jul. 2019 was $253 Mil. Hormel Foods's Interest Expense for the three months ended in Jul. 2019 was $-3 Mil. Hormel Foods's interest coverage for the quarter that ended in Jul. 2019 was 78.83. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies interest coverage is at least 5. Hormel Foods Corp has enough cash to cover all of its debt. Its financial situation is stable.

NYSE:HRL' s Interest Coverage Range Over the Past 10 Years
Min: 19   Max: 99.93
Current: 56.05

19
99.93

NYSE:HRL's Interest Coverage is ranked higher than
78% of the 1234 Companies
in the Consumer Packaged Goods industry.

( Industry Median: 8.92 vs. NYSE:HRL: 56.05 )

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


Hormel Foods 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.

Hormel Foods Annual Data
Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.95 81.23 99.93 97.85 43.68

Hormel Foods Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
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 28.87 54.83 47.96 53.26 78.83

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.


Hormel Foods Interest Coverage Distribution

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



Hormel Foods 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.

Hormel Foods's Interest Coverage for the fiscal year that ended in Oct. 2018 is calculated as

Here, for the fiscal year that ended in Oct. 2018, Hormel Foods's Interest Expense was $-26 Mil. Its Operating Income was $1,157 Mil. And its Long-Term Debt & Capital Lease Obligation was $625 Mil.

Interest Coverage=-1*Operating Income (A: Oct. 2018 )/Interest Expense (A: Oct. 2018 )
=-1*1157.228/-26.494
=43.68

Hormel Foods's Interest Coverage for the quarter that ended in Jul. 2019 is calculated as

Here, for the three months ended in Jul. 2019, Hormel Foods's Interest Expense was $-3 Mil. Its Operating Income was $253 Mil. And its Long-Term Debt & Capital Lease Obligation was $250 Mil.

Interest Coverage=-1*Operating Income (Q: Jul. 2019 )/Interest Expense (Q: Jul. 2019 )
=-1*253.273/-3.213
=78.83

* 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.


Hormel Foods  (NYSE:HRL) 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 .


Hormel Foods Interest Coverage Related Terms

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