Whole Foods Market (Whole Foods Market) Interest Coverage : 16.36 (As of Jun. 2017)

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What is Whole Foods Market 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. Whole Foods Market's Operating Income for the three months ended in Jun. 2017 was $180 Mil. Whole Foods Market's Interest Expense for the three months ended in Jun. 2017 was $-11 Mil. Whole Foods Market's interest coverage for the quarter that ended in Jun. 2017 was 16.36. The higher the ratio, the stronger the company's financial strength is.

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

WFM's Interest Coverage is not ranked ^*
in the Retail - Defensive industry.
Industry Median: 8.81
* Ranked among companies with meaningful Interest Coverage only.

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

Whole Foods Market Interest Coverage Historical Data

The historical data trend for Whole Foods Market'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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Whole Foods Market Interest Coverage Chart

Whole Foods Market Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Interest Coverage

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2,101.69

N/A

20.90

Whole Foods Market Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17
Interest Coverage	Get a 7-Day Free Trial															17.42	14.09	11.40	15.55	16.36

Competitive Comparison of Whole Foods Market's Interest Coverage

For the Grocery Stores subindustry, Whole Foods Market'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.

Whole Foods Market's Interest Coverage Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where Whole Foods Market's Interest Coverage falls into.

Whole Foods Market 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.

Whole Foods Market's Interest Coverage for the fiscal year that ended in Sep. 2016 is calculated as

Here, for the fiscal year that ended in Sep. 2016, Whole Foods Market's Interest Expense was $-41 Mil. Its Operating Income was $857 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,048 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2016 )	/	Interest Expense (A: Sep. 2016 )
	=	-1	*	857	/	-41
	=	20.90

Whole Foods Market's Interest Coverage for the quarter that ended in Jun. 2017 is calculated as

Here, for the three months ended in Jun. 2017, Whole Foods Market's Interest Expense was $-11 Mil. Its Operating Income was $180 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,046 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2017 )	/	Interest Expense (Q: Jun. 2017 )
	=	-1	*	180	/	-11
	=	16.36

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

Whole Foods Market (NAS:WFM) 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 .

Whole Foods Market Interest Coverage Related Terms

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

Whole Foods Market (Whole Foods Market) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Whole Foods Market Inc (NAS:WFM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.wholefoodsmarket.com

Whole Foods Market is the world's leading retailer of natural and organic foods by units and is the first certified organic grocer in the United States. Whole Foods' only operating segment consists of natural and organic foods supermarkets. As of fiscal 2016, the company had 456 stores in the United States, Canada, and the United Kingdom. The average store size is about 39,000 square feet. About 15% of the company's sales were derived from the sale of private-label products. The company announced a pending acquisition by Amazon in June 2017.

Executives

Scott F Powers	director	STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111
Sharon Mccollam	director	C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Ken C Hicks	director	150 N. ORANGE GROVE BLVD, PASADENA CA 91103
Mary Ellen Coe	director	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Gabrielle Sulzberger	director	450 LEXINGTON AVENUE, FLOOR 13, NEW YORK NY 10017
Glenda J Flanagan	officer: Executive Vice President	550 BOWIE STREET, AUSTIN TX 78703
Joseph D Mansueto	director	C/O MORNINGSTAR, INC., 225 WEST WACKER DRIVE, CHICAGO IL 60606
Robb Walter E Iv	director	550 BOWIE STREET, AUSTIN TX 78703
Ralph Z Sorenson	director	WHOLE FOODS MARKET, INC. 550 BOWIE STREET AUSTIN TX 78703
William A Tindell	director	500 FREEPORT PARKWAY, COPPELL TX 75019
Green Equity Investors V, L.p.	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Gei Capital V, Llc	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green Equity Investors Side V, L.p.	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Green V Holdings, Llc	other: See General Remarks.	11111 SANTA MONICA BOULEVARD, SUITE 2000, LOS ANGELES CA 90025
Lgp Management Inc	other: See General Remarks.	11111 SANTA MONICA BLVD, STE 2000, LOS ANGELES CA 90025