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Perrigo Co Interest Coverage

: 0.71 (As of Mar. 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. Perrigo Co's Operating Income for the three months ended in Mar. 2022 was $25 Mil. Perrigo Co's Interest Expense for the three months ended in Mar. 2022 was $-36 Mil. Perrigo Co's interest coverage for the quarter that ended in Mar. 2022 was 0.71. The higher the ratio, the stronger the company's financial strength is.

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

PRGO' s Interest Coverage Range Over the Past 10 Years
Min: 1.82   Med: 4.45   Max: 10.5
Current: 4.45


PRGO's Interest Coverage is ranked worse than
78.49% of 651 companies
in the Drug Manufacturers industry
Industry Median: 21.28 vs PRGO: 4.45

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


Perrigo Co Interest Coverage Historical Data

The historical data trend for Perrigo Co'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.

Perrigo Co Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.20 3.74 1.82 2.10 4.80

Perrigo Co Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 1.66 1.32 14.33 2.06 0.71

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Perrigo Co'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.

   

Perrigo Co Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, Perrigo Co's Interest Coverage distribution charts can be found below:

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



Perrigo Co 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.

Perrigo Co'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, Perrigo Co's Interest Expense was $-125 Mil. Its Operating Income was $600 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,064 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*600.4/-125
=4.80

Perrigo Co's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Perrigo Co's Interest Expense was $-36 Mil. Its Operating Income was $25 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,511 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*25.3/-35.8
=0.71

* 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.


Perrigo Co  (NYSE:PRGO) 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 .


Perrigo Co Interest Coverage Related Terms

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


Perrigo Co Business Description

Perrigo Co logo
Address
The Sharp Building, Hogan Place, Dublin, IRL, D02 TY74
Perrigo Co PLC is a leading private label supplier of generic over the counter (OTC) drugs in the U.S. and Europe. The company's product offerings fall under traditional OTC drug categories (i.e. cough, cold, allergy, pain), in addition to oral care, infant nutrition (formula), and nicotine cessation aids. In addition to private label manufacturing, the company also sells products under its own brands (largely in the skincare and oral-care category). The company became a pure-play in OTC consumer healthcare in 2021, following a series of divestitures over several years (sold off generic prescription topicals, animal health, and active pharmaceutical ingredient business). In late 2021, Perrigo signed an offer to acquire HRA Pharma.
Executives
Ives Alison officer: EVP & Chief Scientific Officer C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Hanson Kyle officer: EVP & General Counsel
Bezerra Eduardo Guarita officer: EVP & Chief Financial Officer C/O FRESH DEL MONTE PRODUCE INC. PO BOX 149222 CORAL GABLES FL 33134
Ashford Orlando D director C/O AMERANT BANK 220 ALHAMBRA CR. CORAL GABLES FL 33134
Doyle Katherine C. director 100 ABBOTT PARK ROAD, AP6C-1N D032L ABBOTT PARK IL 60064
Sorota Richard S officer: EVP & President CSCA HARMAN INTERNATIONAL INDUSTRIES, INC. 1101 PENNSYLVANIA AVE, NW, #1010 WASHINGTON DC 20004
Mann Erica L director ONE KELLOGG SQUARE P.O. BOX 3599 BATTLE CREEK MI 49016-3599
Silcock Raymond officer: EVP, Chief Financial Officer 399 JEFFERSON ROAD PARSIPPANY NJ 07054
Willis Robert officer: Acting CHRO C/O PERRIGO COMPANY PLC 515 EASTERN AVENUE ALLEGAN MI 49010
Dillard James E Iii officer: EVP, Chief Scientific Officer 6601 WEST BROAD STREET RICHMOND VA 23230
Kessler Murray S director, officer: CEO 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Smith Jeffrey C director 777 THIRD AVENUE, 18TH FLOOR NEW YORK NY 10017
Roehrhoff Uwe director, officer: CEO C/O PERRIGO COMPANY PLC TREASURY BUILDING, LOWER GRAND CANAL ST DUBLIN L2 D2
Classon Rolf A director C/O CATALENT, INC. 14 SCHOOLHOUSE ROAD SOMERSET NJ 08873
Karaboutis Adriana director C/O BIOGEN IDEC INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Perrigo Co Headlines

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