Brunswick Corporation (BC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 329,900 | 734,900 | 952,100 | 802,400 | 540,100 |
| Interest expense | US$ in thousands | 126,600 | 112,400 | 98,100 | 65,900 | 67,300 |
| Interest coverage | 2.61 | 6.54 | 9.71 | 12.18 | 8.03 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $329,900K ÷ $126,600K
= 2.61
Based on the data provided for Brunswick Corporation's interest coverage ratio over the five-year period from December 31, 2020, to December 31, 2024, we observe the following trends:
1. December 31, 2020: The interest coverage ratio was 8.03, indicating that Brunswick Corporation generated 8.03 times the amount of operating income to cover its interest expenses.
2. December 31, 2021: The interest coverage ratio improved to 12.18, reflecting an increase in the company's ability to cover its interest obligations with operating income.
3. December 31, 2022: The interest coverage ratio decreased to 9.71, but still remained at a healthy level, signaling the company's continued ability to meet its interest payments.
4. December 31, 2023: The interest coverage ratio further declined to 6.54, suggesting a potential decrease in the company's ability to cover its interest expenses from operating income.
5. December 31, 2024: The interest coverage ratio dropped to 2.61, indicating a significant decrease in Brunswick Corporation's ability to cover its interest obligations with its operating income. This may raise concerns about the company's financial health and its ability to service its debt.
Overall, while Brunswick Corporation maintained a strong interest coverage ratio in the initial years of the period, there was a notable decline in the latter years, particularly reaching a concerning level by December 31, 2024. This trend highlights the importance of monitoring the company's financial performance and debt management strategies to ensure long-term sustainability and stability.
Peer comparison
Dec 31, 2024