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Keurig Dr Pepper Financial Strength

: 5 (As of Jun. 2022)
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Keurig Dr Pepper has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Keurig Dr Pepper's Interest Coverage for the quarter that ended in Jun. 2022 was 3.27. Keurig Dr Pepper's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.92. As of today, Keurig Dr Pepper's Altman Z-Score is 1.78.


Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Keurig Dr Pepper's Financial Strength, along with its competitors' market caps and Financial Strength 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.

   

Keurig Dr Pepper Financial Strength Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Keurig Dr Pepper's Financial Strength distribution charts can be found below:

* The bar in red indicates where Keurig Dr Pepper's Financial Strength falls into.



Keurig Dr Pepper Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Keurig Dr Pepper's Interest Expense for the months ended in Jun. 2022 was $-175 Mil. Its Operating Income for the months ended in Jun. 2022 was $572 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $12,939 Mil.

Keurig Dr Pepper's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*572/-175
=3.27

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Keurig Dr Pepper's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(185 + 12939) / 14216
=0.92

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Keurig Dr Pepper has a Z-score of 1.78, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.78 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Keurig Dr Pepper  (NAS:KDP) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Keurig Dr Pepper has the Financial Strength Rank of 5.


Keurig Dr Pepper Financial Strength Related Terms

Thank you for viewing the detailed overview of Keurig Dr Pepper's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Keurig Dr Pepper Business Description

Keurig Dr Pepper logo
Traded in Other Exchanges
Address
53 South Avenue, Burlington, MA, USA, 01803
Keurig Dr Pepper, the product of a 2018 merger between Dr Pepper Snapple and Keurig Green Mountain, is the third- largest nonalcoholic beverage company in North America. In addition to the eponyms, the firm's flagship brands include 7UP, Canada Dry, Schweppes, Mott's, and Bai. The company situates itself at different positions of the value chain depending on the segment (it reports four operating segments) and the product. It is primarily a brand owner in its beverage concentrates and Latin America beverages segments, as well as for the single-serve brewers within its coffee systems segment, and owns integrated production and distribution operations in its packaged beverages segment as well as for its K-cup pods.
Executives
Call Michael Andrew director 905 WEST FULTON MARKET SUITE 200 CHICAGO IL 60607
Shoemaker Anthony officer: Chief Legal Officer 6425 HALL OF FAME LANE FRISCO TX 75034
Milikin Maurice Anthony officer: Chief Supply Chain Officer 6425 HALL OF FAME LANE FRISCO TX 75034
Urdaneta Nelson director C/O MONDELEZ INTERNATIONAL, INC. THREE PARKWAY NORTH DEERFIELD IL 60015
Lubomira Rochet director 6425 HALL OF FAME LANE FRISCO TX 75034
Sandler Debra A. director KEURIG DR PEPPER INC. 53 SOUTH AVE. BURLINGTON MA 01803
Goudet Olivier director 350 FIFTH AVENUE NEW YORK NY 10118
Harf Peter director C/O COTY INC. 350 FIFTH AVENUE NEW YORK NY 10118
Whitmore Justin officer: Chief Strategy Officer 6425 HALL OF FAME LANE FRISCO TX 75034
Hickman Juliette director 53 SOUTH AVE. BURLINGTON MA 01803
Acorn Top Holding B.v. 10 percent owner PIET HEINKADE 55 AMSTERDAM P7 1019 GM
Tan Justine director 350 FIFTH AVENUE NEW YORK NY 10118
Jab Forest B.v. 10 percent owner OUDE WEG 147 NL - 2031 CC HAARLEM HAARLEM, THE NETHERLANDS P7 2031
Arboleda Mauricio Leyva officer: Pres.,Int'l & Bus. Development 6425 HALL OF FAME LANE FRISCO TX 75034
Joh. A. Benckiser B.v. 10 percent owner OOSTERDOCKSSTRAAT 80 AMSTERDAM P7 1011DK

Keurig Dr Pepper Headlines

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