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Welbilt Interest Coverage

: 2.82 (As of Sep. 2021)
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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. Welbilt's Operating Income for the three months ended in Sep. 2021 was $53 Mil. Welbilt's Interest Expense for the three months ended in Sep. 2021 was $-19 Mil. Welbilt's interest coverage for the quarter that ended in Sep. 2021 was 2.82. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Welbilt Inc interest coverage is 2.34, which is low.

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

NYSE:WBT' s Interest Coverage Range Over the Past 10 Years
Min: 1.05   Med: 2.62   Max: No Debt
Current: 2.34

1.05
No Debt

NYSE:WBT's Interest Coverage is ranked lower than
89% of the 2093 Companies
in the Industrial Products industry.

( Industry Median: 17.86 vs. NYSE:WBT: 2.34 )

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


Welbilt Interest Coverage Historical Data

The historical data trend for Welbilt'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.

Welbilt Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.54 2.62 2.35 1.89 1.05

Welbilt Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 1.18 2.21 1.70 2.64 2.82

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Welbilt'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.

   

Welbilt Interest Coverage Distribution

For the Industrial Products industry and Industrials sector, Welbilt's Interest Coverage distribution charts can be found below:

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



Welbilt 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.

Welbilt's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Welbilt's Interest Expense was $-81 Mil. Its Operating Income was $86 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,445 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*85.6/-81.4
=1.05

Welbilt's Interest Coverage for the quarter that ended in Sep. 2021 is calculated as

Here, for the three months ended in Sep. 2021, Welbilt's Interest Expense was $-19 Mil. Its Operating Income was $53 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,410 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2021 )/Interest Expense (Q: Sep. 2021 )
=-1*53/-18.8
=2.82

* 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.


Welbilt  (NYSE:WBT) 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 .


Welbilt Interest Coverage Related Terms

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


Welbilt Business Description

Welbilt logo
Industry
Industrials » Industrial Products NAICS : 333241 SIC : 3556
Traded in Other Exchanges
Address
2227 Welbilt Boulevard, New Port Richey, FL, USA, 34655
Welbilt Inc is engaged in the designing, manufacturing and supplying of equipment for the commercial foodservice market which is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, resorts, cruise ships, caterers, supermarkets, convenience stores, hospitals, schools, and other institutions. The group offers various products such as grills, induction cookers braising pans, steamers, and others under the brands name such as Cleveland, Convotherm, Delfield, Frymaster, and others. The firm's geographical segments include Americas, EMEA, and APAC. It generates a majority of its revenue from the Americas.
Executives
Agard Martin D. officer: EVP Chief Financial Officer 3000 JOHN DEERE ROAD TOANO VA 23168
Perez Kimberly Ann officer: VP, Chief Accounting Officer 4211 W. BOY SCOUT BLVD. TAMPA FL 33607
Fields Janice L director 800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167
Egnotovich Cynthia M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EGNOTOVICH CYNTHIA M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Sheffer Richard James officer: VP, IR, Risk Mgmt, Treasurer MANITOWOC FOODSERVICE INC. 2227 WELBILT BLVD. NEW PORT RICHEY FL 34655
Palm Jamie E officer: VP, Corp Controller, CAO 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Caron Richard N. officer: EVP Chief Innovation Officer MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Gudenkauf Jennifer officer: EVP & CHRO 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Johnson William director, officer: President and CEO 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515
Chow Joan Kai director 215 W DIEHL ROAD NAPERVILLE IL 60563
Horn Joel H. officer: EVP, Gen Counsel and Corp Secy 2227 WELBILT BOULEVARD NEW PORT RICHEY FL 34655
Davis Thomas Dale director MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655
Gamache Brian R director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GAMACHE BRIAN R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Matosevic Josef officer: EVP Chief Operating Officer 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243
Langham Andrew director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160

Welbilt Headlines

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