Bausch Health (Bausch Health) Interest Coverage

: 1.39 (As of Dec. 2023)

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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. Bausch Health's Operating Income for the three months ended in Dec. 2023 was $503 Mil. Bausch Health's Interest Expense for the three months ended in Dec. 2023 was $-363 Mil. Bausch Health's interest coverage for the quarter that ended in Dec. 2023 was 1.39. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Bausch Health Companies Inc interest coverage is 1.2, which is low.

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

BHC' s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 0.9 Max: 2.32
Current: 1.2

BHC's Interest Coverage is ranked worse than
89.57% of 690 companies
in the Drug Manufacturers industry
Industry Median: 12.175 vs BHC: 1.20

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

Bausch Health Interest Coverage Historical Data

The historical data trend for Bausch Health'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.

Bausch Health Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

0.80

0.84

1.10

0.95

1.20

Bausch Health Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.37	0.72	1.20	1.46	1.39

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Bausch Health'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.

Bausch Health Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, Bausch Health's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Bausch Health's Interest Coverage falls into.

Bausch Health 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.

Bausch Health'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, Bausch Health's Interest Expense was $-1,328 Mil. Its Operating Income was $1,600 Mil. And its Long-Term Debt & Capital Lease Obligation was $21,938 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1600	/	-1328
	=	1.20

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

Here, for the three months ended in Dec. 2023, Bausch Health's Interest Expense was $-363 Mil. Its Operating Income was $503 Mil. And its Long-Term Debt & Capital Lease Obligation was $21,938 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	503	/	-363
	=	1.39

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

Bausch Health (NYSE:BHC) 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 .

Bausch Health Interest Coverage Related Terms

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

Bausch Health (Bausch Health) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Bausch Health Companies Inc (NYSE:BHC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BVF:Germany BVF:Germany BHC:Canada

Address

2150 Saint Elzear Boulvard West, Laval, QC, CAN, H7L 4A8

Website

https://www.bauschhealth.com

Bausch Health Companies Inc is a global specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the dermatology, gastrointestinal, and ophthalmology markets. The company reports revenue in five segments: Salix; International; Solta Medical; Diversified Products and Bausch + Lomb. It generates maximum revenue from the Bausch + Lomb segment.

Executives

Seana Carson	officer: EVP, General Counsel	400 SOMERSET CORPORATE BLVD, BRIDGEWATER NJ 08807
John S Barresi	officer: SVP, Controller & CAO	727 FIFTH AVENUE, NEW YORK NY 10022
Richard Mulligan	director	C/O ICAHN CAPITAL LP, 767 FIFTH AVENUE, SUITE 4700, NEW YORK NY 10153
Tom George Vadaketh	officer: EVP, Chief Financial Officer	1727 JOCKEYS WAY, YARDLEY PA 19067
Robert Spurr	director, officer: U.S. President-Pharma Business	C/O BAUSCH HEALTH COMPANIES INC., 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Joseph F Gordon	officer: Pres&Co-Head Bausch&Lomb/Int'l	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Frederick Munsch	officer: SVP, Controller and CAO	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Christina Ackermann	officer: EVP AND GENERAL COUNSEL	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Sam Eldessouky	officer: EVP & Chief Financial Officer	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Steven D Miller	director	16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160
Von Eschenbach Andrew C.	director	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
De Schutter Richard U	director	C/O BLCO, 400 SOMERSET CORPORATE BLVD., BRIDGEWATER NJ 08807
Brett Icahn	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
William D. Humphries	officer: EVP, COMPANY GROUP CHAIRMAN	C/O STRATA SKIN SCIENCES, INC., 5 WALNUT GROVE DRIVE SUITE 140, HORSHAM PA 19044
Valueact Capital Master Fund, L.p.	director, other: See remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129