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USFD (US Foods Holding) Interest Coverage : 4.35 (As of Jun. 2024)


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What is US Foods Holding 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. US Foods Holding's Operating Income for the three months ended in Jun. 2024 was $352 Mil. US Foods Holding's Interest Expense for the three months ended in Jun. 2024 was $-81 Mil. US Foods Holding's interest coverage for the quarter that ended in Jun. 2024 was 4.35. The higher the ratio, the stronger the company's financial strength is.

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

USFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.87   Med: 2.38   Max: 3.8
Current: 3.28


USFD's Interest Coverage is ranked worse than
78.46% of 246 companies
in the Retail - Defensive industry
Industry Median: 9.145 vs USFD: 3.28

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


US Foods Holding Interest Coverage Historical Data

The historical data trend for US Foods Holding'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.

US Foods Holding Interest Coverage Chart

US Foods Holding 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 3.80 - 2.04 2.38 3.18

US Foods Holding Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 3.93 2.84 3.65 2.25 4.35

Competitive Comparison of US Foods Holding's Interest Coverage

For the Food Distribution subindustry, US Foods Holding'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.


US Foods Holding's Interest Coverage Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Interest Coverage distribution charts can be found below:

* The bar in red indicates where US Foods Holding's Interest Coverage falls into.



US Foods Holding 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.

US Foods Holding'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, US Foods Holding's Interest Expense was $-324 Mil. Its Operating Income was $1,031 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,829 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1031/-324
=3.18

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

Here, for the three months ended in Jun. 2024, US Foods Holding's Interest Expense was $-81 Mil. Its Operating Income was $352 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,589 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*352/-81
=4.35

* 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.


US Foods Holding  (NYSE:USFD) 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 .


US Foods Holding Interest Coverage Related Terms

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


US Foods Holding Business Description

Traded in Other Exchanges
Address
9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018
US Foods Holding Corp is the U.S. food service distributor. us Foods distributes food and nonfood products to the healthcare and hospitality industries, restaurants, and education, government facilities, and grocers. In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. The company generates majority of the revenue from Meats and seafood products.
Executives
Dirk J. Locascio officer: Chief Financial Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
David A Rickard officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Scott D. Ferguson director 250 WEST 55TH STREET, 34TH FLOOR, NEW YORK NY 10019
Poe David L Jr officer: EVP, Chief Merchant 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Martha Ha officer: EVP, General Counsel 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
James D Sturgell officer: EVP, Chief Commercial Officer 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Randy J Taylor officer: EVP, Field Operations 9399 W. HIGGINS RD., SUITE 100, ROSEMONT IL 60018
Andrew E. Iacobucci officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., ROSEMONT IL 60018
Steven Guberman officer: Chief Merchandising Officer C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Fresh Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Sunil Gupta director C/O US FOODS HOLDING CORP., 9399 W HIGGINS RD, SUITE 100, ROSEMONT IL 60018
Jay Kvasnicka officer: See Remarks C/O US FOODS HOLDING CORP., 9399 W. HIGGINS RD., STE 100, ROSEMONT IL 60018
David E Flitman officer: Chief Executive Officer C/O NALCO COMPANY, 1601 WEST DIEHL ROAD, NAPERVILLE IL 60563