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. HJ Heinz Company's
Operating Income
for the
three
months ended in Jan. 2013 was €352 Mil. HJ Heinz Company's Interest Expense for the
three
months ended in Jan. 2013 was €-53 Mil.
HJ Heinz Company's interest coverage for the quarter that ended in Jan. 2013 was 6.58.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for HJ Heinz Company's Interest Coverage or its related term are showing as below:
FRA:HJH'
s Interest Coverage Range Over the Past 10 Years
Min: 0 Med: 0 Max: 5.43
Current: 5.43
FRA:HJH's Interest Coverage is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 8.54
vs FRA:HJH: 5.43
HJ Heinz Company Interest Coverage Historical Data
The historical data trend for HJ Heinz Company'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.
Competitive Comparison of HJ Heinz Company's Interest Coverage
For the Packaged Foods subindustry, HJ Heinz Company'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.
HJ Heinz Company's Interest Coverage Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, HJ Heinz Company's Interest Coverage distribution charts can be found below:
* The bar in red indicates where HJ Heinz Company's Interest Coverage falls into.
HJ Heinz Company 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:
* 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.
HJ Heinz Company (FRA:HJH) 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 .
HJ Heinz Company Interest Coverage Related Terms
Thank you for viewing the detailed overview of HJ Heinz Company's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.
HJ Heinz Company was incorporated in Pennsylvania on July 27, 1900. The Company manufactures and markets an extensive line of food products throughout the world. Its main products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company's products are manufactured and packaged to provide safe, wholesome foods for consumers, as well as foodservice and institutional customers. Many products are prepared from recipes developed in the Company's research laboratories and experimental kitchens. Ingredients are carefully selected, inspected and passed on to modern factory kitchens where they are processed, after which the intermediate product is filled automatically into containers of glass, metal, plastic, paper or fiberboard, which are then sealed. Products are prepared by sterilization, blending, fermentation, pasteurization, homogenization, chilling, freezing, pickling, drying, freeze drying, baking or extruding, then labeled and cased for market. Quality assurance procedures are designed for each product and process and applied for quality and compliance with applicable laws. The Company manufactures and contracts for the manufacture of its products from a wide variety of raw foods. Pre-season contracts are made with farmers for certain raw materials such as a portion of the Company's requirements of tomatoes, cucumbers, potatoes, onions and some other fruits and vegetables. Ingredients, such as dairy products, meat, sugar and other sweeteners, including high fructose corn syrup, spices, flour and fruits and vegetables, are purchased from approved suppliers. It also owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world. Its recognizable brand is Heinz. The Company has a global portfolio of brands focused in three core categories, Ketchup and Sauces, Meals and Snacks, and Infant/Nutrition. The Company is subject to numerous food safety and other laws and regulations regarding the manufacturing, marketing, and distribution of food products.
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