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GRFS (Grifols) Interest Coverage : 1.25 (As of Jun. 2024)


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What is Grifols 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. Grifols's Operating Income for the three months ended in Jun. 2024 was $272 Mil. Grifols's Interest Expense for the three months ended in Jun. 2024 was $-218 Mil. Grifols's interest coverage for the quarter that ended in Jun. 2024 was 1.25. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Grifols SA interest coverage is 1.34, which is low.

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

GRFS' s Interest Coverage Range Over the Past 10 Years
Min: 1.34   Med: 3.83   Max: 4.38
Current: 1.34


GRFS's Interest Coverage is ranked worse than
88.45% of 658 companies
in the Drug Manufacturers industry
Industry Median: 13.2 vs GRFS: 1.34

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


Grifols Interest Coverage Historical Data

The historical data trend for Grifols'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.

Grifols Interest Coverage Chart

Grifols Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.46 4.38 2.41 1.58 1.43

Grifols Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Jun24
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 1.27 1.70 1.69 0.95 1.25

Competitive Comparison of Grifols's Interest Coverage

For the Drug Manufacturers - General subindustry, Grifols'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.


Grifols's Interest Coverage Distribution in the Drug Manufacturers Industry

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

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



Grifols 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.

Grifols'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, Grifols's Interest Expense was $-563 Mil. Its Operating Income was $802 Mil. And its Long-Term Debt & Capital Lease Obligation was $10,054 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*802.244/-562.77
=1.43

Grifols's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Grifols's Interest Expense was $-218 Mil. Its Operating Income was $272 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,572 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*271.703/-217.99
=1.25

* 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.


Grifols  (NAS:GRFS) 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 .


Grifols Interest Coverage Related Terms

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


Grifols Business Description

Address
Avinguda de la Generalitat, 152, Parc de Negocis Can Sant Joan, Sant Cugat del Valles, Barcelona, ESP, 08174
As a vertically integrated plasma derivative producer, Spain-based Grifols collects plasma and then manufactures and sells plasma-derived products globally. By acquiring Talecris in 2011, Grifols dramatically expanded its plasma-derived product portfolio, and following the firm's Biotest acquisition in April 2022, the biopharma business contributed 84% of sales in 2023. Grifols also has smaller segments including diagnostics (10% of sales) and biosupplies.