US Foods Holding (US Foods Holding) Interest Coverage

: 3.65 (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. US Foods Holding's Operating Income for the three months ended in Dec. 2023 was $292 Mil. US Foods Holding's Interest Expense for the three months ended in Dec. 2023 was $-80 Mil. US Foods Holding's interest coverage for the quarter that ended in Dec. 2023 was 3.65. The higher the ratio, the stronger the company's financial strength is.

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

USFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.87 Med: 2.38 Max: 3.8
Current: 3.18

USFD's Interest Coverage is ranked worse than
76.08% of 255 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs USFD: 3.18

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

US Foods Holding Interest Coverage Historical Data

The historical data trend for US Foods Holding'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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US Foods Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.80

2.04

2.38

3.18

US Foods Holding Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.77	2.31	3.93	2.84	3.65

Competitive Comparison

For the Food Distribution subindustry, US Foods Holding'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.

US Foods Holding Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Interest Coverage distribution charts can be found below:

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

US Foods Holding 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.

US Foods Holding'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, US Foods Holding's Interest Expense was $-324 Mil. Its Operating Income was $1,031 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,829 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1031	/	-324
	=	3.18

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

Here, for the three months ended in Dec. 2023, US Foods Holding's Interest Expense was $-80 Mil. Its Operating Income was $292 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,829 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	292	/	-80
	=	3.65

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

US Foods Holding (NYSE:USFD) 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 .

US Foods Holding Interest Coverage Related Terms

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

US Foods Holding (US Foods Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » US Foods Holding Corp (NYSE:USFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UFH:Germany

Address

9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018

Website

https://www.usfoods.com

us Foods is the second-largest U.S. food service distributor behind Sysco, holding 11% market share of the highly fragmented food service distribution industry. us Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. After Sysco's attempt to purchase us Foods failed to gain federal approval in 2015, us Foods entered the public market via an initial public offering.

Executives

Scott D. Ferguson	director	250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Poe David L Jr	officer: EVP, Chief Merchant	9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Martha Ha	officer: EVP, General Counsel	9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
James D Sturgell	officer: EVP, Chief Commercial Officer	9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Randy J Taylor	officer: EVP, Field Operations	9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Steven Guberman	officer: Chief Merchandising Officer	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Andrew E. Iacobucci	officer: Chief Merchandising Officer	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
Kkr Group Co. Inc.	10 percent owner	30 HUDSON YARDS, NEW YORK NY 10001
Kkr Fresh Holdings L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Sunil Gupta	director	C/O US FOODS HOLDING CORP., 9399 W HIGGINS RD, SUITE 100, ROSEMONT IL 60018
Jay Kvasnicka	officer: See Remarks	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David E Flitman	officer: Chief Executive Officer	C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563
Works James David Jr	officer: EVP & CHRO	4001 RODNEY PARHAM RD, LITTLE ROCK AR 72212
Dirk J. Locascio	officer: Chief Financial Officer	C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018