Fortrea Holdings (Fortrea Holdings) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Fortrea Holdings 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. Fortrea Holdings's Operating Income for the three months ended in Dec. 2023 was $-3 Mil. Fortrea Holdings's Interest Expense for the three months ended in Dec. 2023 was $-35 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

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

FTRE' s Interest Coverage Range Over the Past 10 Years
Min: 0.79 Med: 1028 Max: No Debt
Current: 0.79

FTRE's Interest Coverage is ranked worse than
95.88% of 340 companies
in the Biotechnology industry
Industry Median: 138.73 vs FTRE: 0.79

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

Fortrea Holdings Interest Coverage Historical Data

The historical data trend for Fortrea Holdings'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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Fortrea Holdings Interest Coverage Chart

Fortrea Holdings Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Interest Coverage

No Debt

675.00

1,381.00

1.25

Fortrea Holdings Quarterly Data
	Dec20	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial					378.00	0.64	53.86	0.74	-

Competitive Comparison of Fortrea Holdings's Interest Coverage

For the Biotechnology subindustry, Fortrea Holdings'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.

Fortrea Holdings's Interest Coverage Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Fortrea Holdings's Interest Coverage distribution charts can be found below:

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

Fortrea Holdings 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.

Fortrea Holdings'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, Fortrea Holdings's Interest Expense was $-70 Mil. Its Operating Income was $87 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,632 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	87.4	/	-69.8
	=	1.25

Fortrea Holdings's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Fortrea Holdings's Interest Expense was $-35 Mil. Its Operating Income was $-3 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,632 Mil.

Fortrea Holdings did not have earnings to cover the interest expense.

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

Fortrea Holdings (NAS:FTRE) 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 .

Fortrea Holdings Interest Coverage Related Terms

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

Fortrea Holdings (Fortrea Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Fortrea Holdings Inc (NAS:FTRE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

K67:Germany

Address

8 Moore Drive, Durham, NC, USA, 27709

Website

https://www.fortrea.com

Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.

Executives

Thomas Pike	officer: Chief Executive Officer	C/O ACCENTURE, 161 N. CLARK STREET, 23RD FLOOR, CHICAGO IL 60601
Peter M Neupert	director	13920 SE EASTGATE WAY, STE 300, BELLEVUE WA 98005
Betty D Larson	director	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE, CHICAGO IL 60661
R Andrew Eckert	director	THREE RAVINIA DRIVE, ATLANTA GA 30346
Edward A Pesicka	director	9120 LOCKWOOD BLVD, MECHANICSVILLE VA 23116
Amrit Ray	director	60 LEVERONI COURT, NOVATO CA 94949
Amanda M. Warren	officer: Chief Accounting Officer	8 MOORE DRIVE, DURHAM NC 27703
David Ross Smith	director	251 BALLARDVALE STREET, WILMINGTON MA 01887
Van Der Vaart Sandra D	director, officer: President and Secretary	531 SOUTH SPRING STREET, BURLINGTON NC 27215
Glenn A Eisenberg	director, officer: Executive Vice President	P O BOX 1017, CHARLOTTE NC 28201-1017
James S. Hanson	officer: General Counsel	79 TW ALEXANDER DRIVE, 4501 RESEARCH COMMONS, SUITE 100, RESEARCH TRIANGLE PARK NC 27709
Laboratory Corp Of America Holdings	10 percent owner	358 S MAIN ST, BURLINGTON NC 27215
Jill G. Mcconnell	officer: Chief Financial Officer	8 MOORE DRIVE, DURHAM NC 27703
Mark A. Morais	officer: Chief Operating Officer	8 MOORE DRIVE, DURHAM NC 27703
Robert S. Pringle	officer: Treasurer	531 SOUTH SPRING STREET, BURLINGTON NC 27215