PPG Industries (PPG Industries) Interest Coverage : 10.04 (As of Mar. 2024)

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What is PPG Industries 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. PPG Industries's Operating Income for the three months ended in Mar. 2024 was $552 Mil. PPG Industries's Interest Expense for the three months ended in Mar. 2024 was $-55 Mil. PPG Industries's interest coverage for the quarter that ended in Mar. 2024 was 10.04. The higher the ratio, the stronger the company's financial strength is.

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

PPG' s Interest Coverage Range Over the Past 10 Years
Min: 8.34 Med: 13.51 Max: 19.29
Current: 9.24

PPG's Interest Coverage is ranked worse than
51.64% of 1189 companies
in the Chemicals industry
Industry Median: 9.85 vs PPG: 9.24

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

PPG Industries Interest Coverage Historical Data

The historical data trend for PPG Industries'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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PPG Industries Interest Coverage Chart

PPG Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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14.80

12.95

14.06

10.31

8.34

PPG Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															6.19	10.36	9.30	7.11	10.04

Competitive Comparison of PPG Industries's Interest Coverage

For the Specialty Chemicals subindustry, PPG Industries'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.

PPG Industries's Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, PPG Industries's Interest Coverage distribution charts can be found below:

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

PPG Industries 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.

PPG Industries'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, PPG Industries's Interest Expense was $-247 Mil. Its Operating Income was $2,059 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,370 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2059	/	-247
	=	8.34

PPG Industries's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, PPG Industries's Interest Expense was $-55 Mil. Its Operating Income was $552 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,540 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	552	/	-55
	=	10.04

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

PPG Industries (NYSE:PPG) 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 .

PPG Industries Interest Coverage Related Terms

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

PPG Industries (PPG Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » PPG Industries Inc (NYSE:PPG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PPG:Mexico PPQ:Germany

Address

One PPG Place, Pittsburgh, PA, USA, 15272

Website

https://www.ppg.com

PPG is a global producer of coatings. The company is the world's largest producer of coatings after the purchase of selected Akzo Nobel assets. PPG's products are sold to a wide variety of end users, including the automotive, aerospace, construction, and industrial markets. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years. PPG is focused on its coatings and specialty products and expansion into emerging regions, as exemplified by the Comex acquisition.

Executives

Iii Chris Roberts	director	1716 LOCUST ST. LS-175, 7TH FLOOR, DES MOINES IA 50309
Vincent J Morales	officer: Senior VP & CFO	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Michael H Mcgarry	officer: Senior Vice President	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Chancey E. Hagerty	officer: Sr. VP, Auto. Refinish Ctgs.	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Karl Henrik Bergstrom	officer: Sr.VP, Arch Ctgs LA, EMEA, AP	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Kevin D. Braun	officer: Sr. VP, Industrial Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Anne M. Foulkes	officer: Sr. VP, Gen. Counsel & Secrtry	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Rebecca B. Liebert	officer: Sr. VP, Automotive Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Brian Richard Williams	officer: Acting Controller	ONE PPG PLACE, PITTSBURGH PA 15272
Timothy M Knavish	officer: Sr. VP, Automotive Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Guillermo Novo	director	AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Michael Nally	director	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
William E Schaupp	officer: Assistant Controller (PAO)	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Kathleen Ligocki	director	3296 PINE LAKE ROAD, WEST BLOOMFIELD MI 48324
Vadlamannati Ramaprasad	officer: Sr. VP, Protect. & Marine Ctgs	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272