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Aryzta AG (Aryzta AG) Interest Coverage : 3.74 (As of Jul. 2023)


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What is Aryzta AG Interest Coverage?

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. Aryzta AG's Operating Income for the six months ended in Jul. 2023 was $87 Mil. Aryzta AG's Interest Expense for the six months ended in Jul. 2023 was $-23 Mil. Aryzta AG's interest coverage for the quarter that ended in Jul. 2023 was 3.74. The higher the ratio, the stronger the company's financial strength is.

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

ARZTF' s Interest Coverage Range Over the Past 10 Years
Min: 0.22   Med: 1.98   Max: 5.29
Current: 4.58


ARZTF's Interest Coverage is ranked worse than
63.05% of 1383 companies
in the Consumer Packaged Goods industry
Industry Median: 8.39 vs ARZTF: 4.58

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


Aryzta AG Interest Coverage Historical Data

The historical data trend for Aryzta AG'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.

* Premium members only.

Aryzta AG Interest Coverage Chart

Aryzta AG Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 0.22 0.31 - 4.90

Aryzta AG Semi-Annual Data
Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23
Interest Coverage Get a 7-Day Free Trial 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 1.05 4.01 5.86 6.19 3.74

Competitive Comparison of Aryzta AG's Interest Coverage

For the Packaged Foods subindustry, Aryzta AG'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.


Aryzta AG's Interest Coverage Distribution in the Consumer Packaged Goods Industry

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

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



Aryzta AG 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.

Aryzta AG's Interest Coverage for the fiscal year that ended in Jul. 2022 is calculated as

Here, for the fiscal year that ended in Jul. 2022, Aryzta AG's Interest Expense was $-19 Mil. Its Operating Income was $92 Mil. And its Long-Term Debt & Capital Lease Obligation was $516 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2022 )/Interest Expense (A: Jul. 2022 )
=-1*91.658/-18.718
=4.90

Aryzta AG's Interest Coverage for the quarter that ended in Jul. 2023 is calculated as

Here, for the six months ended in Jul. 2023, Aryzta AG's Interest Expense was $-23 Mil. Its Operating Income was $87 Mil. And its Long-Term Debt & Capital Lease Obligation was $532 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2023 )/Interest Expense (Q: Jul. 2023 )
=-1*86.504/-23.119
=3.74

* 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.


Aryzta AG  (OTCPK:ARZTF) 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 .


Aryzta AG Interest Coverage Related Terms

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


Aryzta AG (Aryzta AG) Business Description

Address
Ifangstrasse 9, Schlieren, CHE, 8952
Aryzta AG is an international specialist food company. Geographically, it has a presence in Switzerland, Germany, France, and other countries. By product segment, bread rolls and artisan loaves are the largest segment, followed by sweet baked & morning goods.

Aryzta AG (Aryzta AG) Headlines

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