The Honest Co (The Honest Co) Interest Coverage : 0 (At Loss) (As of Mar. 2024)

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What is The Honest Co 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. The Honest Co's Operating Income for the three months ended in Mar. 2024 was $-1.3 Mil. The Honest Co's Interest Expense for the three months ended in Mar. 2024 was $-0.0 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 The Honest Co's Interest Coverage or its related term are showing as below:

HNST's Interest Coverage is not ranked ^*
in the Consumer Packaged Goods industry.
Industry Median: 8.47
* 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.

The Honest Co Interest Coverage Historical Data

The historical data trend for The Honest Co'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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The Honest Co Interest Coverage Chart

The Honest Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

N/A

The Honest Co Quarterly Data
	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													-	-	-	76.81	-

Competitive Comparison of The Honest Co's Interest Coverage

For the Household & Personal Products subindustry, The Honest Co'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.

The Honest Co's Interest Coverage Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's Interest Coverage distribution charts can be found below:

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

The Honest Co 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.

The Honest Co'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, The Honest Co's Interest Expense was $-0.3 Mil. Its Operating Income was $-36.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $21.7 Mil.

The Honest Co did not have earnings to cover the interest expense.

The Honest Co's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, The Honest Co's Interest Expense was $-0.0 Mil. Its Operating Income was $-1.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $19.6 Mil.

The Honest Co did not have earnings to cover the interest expense.

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

The Honest Co (NAS:HNST) 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 .

The Honest Co Interest Coverage Related Terms

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

The Honest Co (The Honest Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Honest Co Inc (NAS:HNST) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

12130 Millennium Drive, Suite 500, Los Angeles, CA, USA, 90094

Website

https://www.honest.com

The Honest Co Inc is a digitally-native consumer products company to make purpose-driven consumer products designed for all people. It is an omnichannel brand, ensuring its products are available wherever its consumers shop through company's Retail and Digital channels. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.

Executives

Stephen Winchell	officer: EVP, Operations and R&D	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Brendan Sheehey	officer: General Counsel	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Jessica Warren	director, officer: Chief Creative Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Institutional Venture Management Xiii, Llc	10 percent owner	3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Kelly J. Kennedy	officer: EVP and CFO	C/O ANNIE'S, INC., 1610 FIFTH STREET, BERKELEY CA 94710
Rick Rexing	officer: Chief Revenue Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
David Loretta	officer: Chief Financial Officer	C/O NORDSTROM, INC., 1700 SEVENTH AVENUE, SEATTLE WA 98101
Carla Vernon	officer: Chief Executive Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
James D White	director	C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
Janis Hoyt	officer: Chief People Officer	12130 MILLENNIUM DRIVE, #500, LOS ANGELES CA 90094
Nikolaos A Vlahos	director, officer: Chief Executive Officer	1221 BROADWAY, OAKLAND CA 94612
Katherine Barton	officer: Chief Growth Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Peter C. Gerstberger	officer: Chief Digital & Strat. Officer	12130 MILLENNIUM DRIVE, SUITE 500, LOS ANGELES CA 90094
Jack Hartung	director	1543 WAZEE STREET, SUITE 200, DENVER CO 80202
Julia M Brown	director	C/O ABLE BRANDS CO., 30 HUDSON YARDS, NEW YORK NY 10001