Nomad Foods (Nomad Foods) Interest Coverage

: 1.61 (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. Nomad Foods's Operating Income for the three months ended in Dec. 2023 was $93 Mil. Nomad Foods's Interest Expense for the three months ended in Dec. 2023 was $-58 Mil. Nomad Foods's interest coverage for the quarter that ended in Dec. 2023 was 1.61. The higher the ratio, the stronger the company's financial strength is.

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

NOMD' s Interest Coverage Range Over the Past 10 Years
Min: 1.17 Med: 4.55 Max: No Debt
Current: 2.81

NOMD's Interest Coverage is ranked worse than
75.02% of 1377 companies
in the Consumer Packaged Goods industry
Industry Median: 8.37 vs NOMD: 2.81

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

Nomad Foods Interest Coverage Historical Data

The historical data trend for Nomad Foods'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.

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Nomad Foods Annual Data

Trend

Dec14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.08

5.69

6.31

5.13

3.13

Nomad Foods Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															2.55	3.64	2.85	4.30	1.61

Competitive Comparison

For the Packaged Foods subindustry, Nomad Foods'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.

Nomad Foods Interest Coverage Distribution

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

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

Nomad 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 ⁽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.

Nomad Foods'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, Nomad Foods's Interest Expense was $-144 Mil. Its Operating Income was $450 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,305 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	450.273	/	-143.839
	=	3.13

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

Here, for the three months ended in Dec. 2023, Nomad Foods's Interest Expense was $-58 Mil. Its Operating Income was $93 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,305 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	92.803	/	-57.797
	=	1.61

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

Nomad Foods (NYSE:NOMD) 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 .

Nomad Foods Interest Coverage Related Terms

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

Nomad Foods (Nomad Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Nomad Foods Ltd (NYSE:NOMD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

NOMD:Mexico 0NH:Germany

Address

No. 1 New Square, Bedfont Lakes Business Park, Feltham, Middlesex, GBR, TW14 8HA

Website

https://www.nomadfoods.com

Nomad Foods Ltd is a packaged foods company that is involved in the business of manufacturing and distribution of branded frozen foods in Western Europe. The company manufactures and markets frozen food products such as fish, vegetables, poultry, and ready meals. It sells its products primarily through large grocery retailers under the brand Birds Eye in the United Kingdom and Ireland, Findus in Italy, France, Spain, and Scandinavia, and Iglo in Germany and other continental markets. The company operates through a single segment being Frozen. The majority of the revenue is generated from the United Kingdom.