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Interest Coverage Ratio for Sanofi L

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0O59: Sanofi L

Sanofi, a healthcare company, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally. The company provides immunolo...

103.38 EUR
Price
EUR
Fair Value
Upside
84.71 - 110.84
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on Sanofi L's Interest Coverage Ratio:

Dec 2016Dec 2018Dec 2020Dec 2022Dec 202410.0x15.0x20.0x25.0x30.0x

Performance Summary
  • Sanofi L's latest twelve months interest coverage ratio is 13.8x
  • Sanofi L's interest coverage ratio for fiscal years ending December 2020 to 2024 averaged 18.7x.
  • Sanofi L's operated at median interest coverage ratio of 16.5x from fiscal years ending December 2020 to 2024.
  • Looking back at the last 5 years, Sanofi L's interest coverage ratio peaked in December 2022 at 25.8x.
  • Sanofi L's interest coverage ratio hit its 5-year low in December 2023 of 13.8x.
  • Sanofi L's interest coverage ratio decreased in 2023 (13.8x, -46.6%) and increased in 2020 (16.5x, +32.1%), 2021 (23.7x, +43.3%), 2022 (25.8x, +9.1%), and 2024 (13.8x, +0.4%).

How does Sanofi L's Interest Coverage Ratio benchmark against competitors?

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We've identified the following companies as similar to Sanofi L because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Interest Coverage Ratio

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interest_coverage
Slug
number
Datatype
text
Format
current
Default Period
FY, Q, LTM, YTD
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Interest Coverage Ratio in the risk category include:

  • EBITDA less CapEx Interest Coverage Ratio - A ratio used to assess a firm's ability to pay interest expenses based on EBITDA less Capital Expenditures.
  • Capital Expenditures Coverage - The amount a company outlays for capital assets for each dollar of cash dollar it generates from those investments.
  • Cash / Total Capital - A ratio that measures the level of the cash relative to the market value of total capital.
  • FCF / Net Income - This data item measures the ratio of levered free cash flow to net income to common, excluding extra items. It is a quick and helpful check on the quality of earnings.
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Interest Coverage Ratio

A ratio used to assess a firm's ability to pay interest expenses based on operating profits (EBIT).

Definition of Interest Coverage Ratio

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Interest Coverage Ratio is defined as:

Interest Coverage Ratio = EBIT / Interest Expense

Interest Coverage Ratio for Sanofi is calculated as follows:

EBIT [ 8.869 B ]
(/) Interest Expense [ 641 M ]
(=) Interest Coverage Ratio [ 13.8x ]

The tables below summarizes the trend in Sanofi’s interest coverage ratio over the last five years:

Fiscal Year EBIT Interest Expense Interest Coverage Ratio
2020-12-31 7.579 B 459 M 16.5x
2021-12-31 8.565 B 362 M 23.7x
2022-12-31 10.381 B 402 M 25.8x
2023-12-31 8.121 B 589 M 13.8x
2024-12-31 8.869 B 641 M 13.8x

The tables below summarizes the trend in Sanofi’s interest coverage ratio over the last four quarters:

Fiscal Quarter EBIT Interest Expense Interest Coverage Ratio
2024-03-31 2.032 B 253 M 8.0x
2024-06-30 1.628 B 54 M 30.1x
2024-09-30 4.079 B 265 M 15.4x
2024-12-31 1.598 B 235 M 6.8x

Times Interest Earned or Interest Coverage measures a company’s ability to meet its debt obligations. If the interest coverage is below 1, the company is not generating enough earnings from its operations to meet interest obligations and indicates that the company is probably using its cash balance or additional borrowings to cover the shortfall. A ratio near 2.5x warrants a closer look.

Earnings before interest and taxes, or EBIT, used in the numerator is adjusted for one-time and non-recurring items to present a clearer view of future earnings. Interest expense can be found on the Income Statement and is used in the denominator.


Click the link below to download a spreadsheet with an example Interest Coverage Ratio calculation for Sanofi L below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-2,201.8x-1,551.8x-901.8x377.5x0200400600800

The chart above depicts the distribution of interest coverage ratio for companies operating in the Healthcare sector in the Developed economic region. Over 1,860 companies were considered in this analysis, and 1,794 had meaningful values. The average interest coverage ratio of companies in the sector is -70.4x with a standard deviation of 260.0x.

Sanofi L's Interest Coverage Ratio of 13.8x ranks in the 88.4% percentile for the sector. The following table provides additional summary stats:

Interest Coverage Ratio In The Healthcare Sector
Economic Risk RegionDeveloped
Total Constituents1,868
Included Constituents1,794
Min-2,362.6x
Max328.7x
Median-4.1x
Mean-70.4x
Standard Deviation260.0x

You can find companies with similar interest coverage ratio using this stock screener.

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