Reckitt Benckiser Group (Reckitt Benckiser Group) Interest Coverage

: 11.64 (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. Reckitt Benckiser Group's Operating Income for the six months ended in Dec. 2023 was $2,019 Mil. Reckitt Benckiser Group's Interest Expense for the six months ended in Dec. 2023 was $-173 Mil. Reckitt Benckiser Group's interest coverage for the quarter that ended in Dec. 2023 was 11.64. The higher the ratio, the stronger the company's financial strength is.

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

RBGLY' s Interest Coverage Range Over the Past 10 Years
Min: 9.35 Med: 12.89 Max: 53.95
Current: 11.35

RBGLY's Interest Coverage is ranked better than
56.79% of 1377 companies
in the Consumer Packaged Goods industry
Industry Median: 8.37 vs RBGLY: 11.35

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

Reckitt Benckiser Group Interest Coverage Historical Data

The historical data trend for Reckitt Benckiser Group'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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Reckitt Benckiser Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

9.55

11.39

11.12

14.62

11.35

Reckitt Benckiser Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage																11.29	14.66	14.58	11.10	11.64

Competitive Comparison

For the Household & Personal Products subindustry, Reckitt Benckiser Group'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.

Reckitt Benckiser Group Interest Coverage Distribution

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

* The bar in red indicates where Reckitt Benckiser Group's Interest Coverage falls into.

Reckitt Benckiser Group 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.

Reckitt Benckiser Group'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, Reckitt Benckiser Group's Interest Expense was $-373 Mil. Its Operating Income was $4,239 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,681 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4239.241	/	-373.418
	=	11.35

Reckitt Benckiser Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Reckitt Benckiser Group's Interest Expense was $-173 Mil. Its Operating Income was $2,019 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,681 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2018.987	/	-173.418
	=	11.64

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

Reckitt Benckiser Group (OTCPK:RBGLY) 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 .

Reckitt Benckiser Group Interest Coverage Related Terms

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

Reckitt Benckiser Group (Reckitt Benckiser Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Reckitt Benckiser Group PLC (OTCPK:RBGLY) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RBGPF:USA RB:Mexico RKTl:UK RKT:UK 3RB:Germany

Address

103-105 Bath Road, Slough, Berkshire, GBR, SL1 3UH

Website

https://www.reckitt.com

Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.