Teva Pharmaceutical Industries (Teva Pharmaceutical Industries) Interest Coverage

: 5.82 (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. Teva Pharmaceutical Industries's Operating Income for the three months ended in Dec. 2023 was $1,286 Mil. Teva Pharmaceutical Industries's Interest Expense for the three months ended in Dec. 2023 was $-221 Mil. Teva Pharmaceutical Industries's interest coverage for the quarter that ended in Dec. 2023 was 5.82. The higher the ratio, the stronger the company's financial strength is.

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

TEVA' s Interest Coverage Range Over the Past 10 Years
Min: 2.89 Med: 3.44 Max: 18.49
Current: 3.1

TEVA's Interest Coverage is ranked worse than
77.1% of 690 companies
in the Drug Manufacturers industry
Industry Median: 12.35 vs TEVA: 3.10

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

Teva Pharmaceutical Industries Interest Coverage Historical Data

The historical data trend for Teva Pharmaceutical Industries'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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Teva Pharmaceutical Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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3.31

3.39

3.48

2.89

3.10

Teva Pharmaceutical Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.46	1.95	2.41	2.69	5.82

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Teva Pharmaceutical Industries'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.

Teva Pharmaceutical Industries Interest Coverage Distribution

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

* The bar in red indicates where Teva Pharmaceutical Industries's Interest Coverage falls into.

Teva Pharmaceutical Industries 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.

Teva Pharmaceutical Industries'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, Teva Pharmaceutical Industries's Interest Expense was $-1,029 Mil. Its Operating Income was $3,194 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,481 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	3194	/	-1029
	=	3.10

Teva Pharmaceutical Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Teva Pharmaceutical Industries's Interest Expense was $-221 Mil. Its Operating Income was $1,286 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,481 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1286	/	-221
	=	5.82

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

Teva Pharmaceutical Industries (NYSE:TEVA) 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 .

Teva Pharmaceutical Industries Interest Coverage Related Terms

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

Teva Pharmaceutical Industries (Teva Pharmaceutical Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Teva Pharmaceutical Industries Ltd (NYSE:TEVA) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TEVJF:USA TEVA:Mexico TEVA:Israel 0LER:UK TEV:Germany TEV:Germany TEV:Germany T1EV34:Brazil TEVA:Austria

Address

124 Dvora HaNevi’a Street, Tel Aviv, ISR, 6944020

Website

https://www.tevapharm.com

Teva Pharmaceutical, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the U.S. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: central nervous system with Copaxone, Ajovy and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a U.S.-based generic and specialty drug distributor.

Executives

Dov Bergwerk	officer: Acting Chief Legal Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Vikki L Conway	officer: See "Remarks"	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Varda Shalev	director	MATAM PARK, BUILDING #5, HAIFA L3 3508409
Eliyahu Sharon Kalif	officer: EVP, Chief Financial Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Amir Weiss	officer: Chief Accounting Officer	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Angus Grant	officer: EVP, Business Development	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Eric A Hughes	officer: See "Remarks"	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Sven Dethlefs	officer: EVP Global Marketing&Portfolio	5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Eric Drape	officer: Executive VP Global Operations	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
David Matthew Stark	officer: Exec. VP Chief Legal Officer	5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Richard Daniell	officer: Exec. VP, European Commercial	5 BASEL STREET, PO BOX 3190, PETACH TIKVA L3 4951033
Richard D Francis	officer: President and CEO	IM LANGACHER 44, GREIFENSEE V8 8606
Hafrun Fridriksdottir	officer: Executive VP, Global R&D	400 INTERPACE PARKWAY, PARSIPPANY NJ 07054
Eli Shani	officer: EVP,Global Marketing&Portfolio	C/O TEVA, 5 BASEL STREET, P.O. BOX 3190, PETACH TIKVA L3 4951033
Tal Zvi Zaks	director	C/O ADAPTIMMUNE THERAPEUTICS PLC, 60 JUBILEE AVE, MILTON PARK, ABINGDON, OXFORDSHIRE X0 OX14 4RX