Brunswick Corporation (BC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 330,000 | 496,800 | 582,200 | 617,500 | 741,600 | 820,100 | 872,700 | 952,700 | 952,000 | 880,900 | 840,300 | 809,800 | 802,500 | 816,200 | 808,100 | 665,500 | 539,900 | 483,600 | 120,800 | 177,700 |
| Interest expense (ttm) | US$ in thousands | 126,600 | 121,500 | 116,600 | 112,800 | 112,400 | 112,800 | 110,800 | 107,900 | 98,100 | 89,200 | 80,000 | 69,500 | 65,900 | 62,400 | 61,900 | 65,200 | 67,300 | 68,600 | 71,000 | 73,100 |
| Interest coverage | 2.61 | 4.09 | 4.99 | 5.47 | 6.60 | 7.27 | 7.88 | 8.83 | 9.70 | 9.88 | 10.50 | 11.65 | 12.18 | 13.08 | 13.05 | 10.21 | 8.02 | 7.05 | 1.70 | 2.43 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $330,000K ÷ $126,600K
= 2.61
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.
Based on the data provided for Brunswick Corporation, we observe the following trends in the interest coverage ratio:
- From March 2020 to September 2021, there is a steady increase in the interest coverage ratio, indicating an improvement in Brunswick Corporation's ability to cover its interest expenses.
- The interest coverage ratio peaks in September 2021 at 13.08, reflecting a strong ability to service its debt obligations.
- However, from September 2021 to December 2024, there is a declining trend in the interest coverage ratio. This suggests a potential increase in the company's debt burden or a decrease in its operating income.
- By December 2024, the interest coverage ratio reaches its lowest point at 2.61, indicating a decline in Brunswick Corporation's ability to cover its interest payments.
In conclusion, over the period from March 2020 to December 2024, Brunswick Corporation experienced fluctuations in its interest coverage ratio, with periods of improvement followed by a decline. It is essential for the company to closely monitor its debt levels and profitability to ensure it can meet its interest obligations effectively in the future.
Peer comparison
Dec 31, 2024