Brinks Company (BCO)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	430,700	350,800	337,700	169,100	180,600
Interest expense	US$ in thousands	203,800	138,800	112,200	96,500	90,600
Interest coverage		2.11	2.53	3.01	1.75	1.99

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $430,700K ÷ $203,800K
= 2.11

The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher ratio indicates a company is more capable of covering its interest obligations.

Brink`s Co. has shown some fluctuation in its interest coverage ratio over the past five years. In 2023, the interest coverage ratio was 2.92, which decreased from 3.45 in 2022, and 3.49 in 2021. This decline might suggest that Brink`s Co. may have experienced a slight decrease in its ability to cover its interest expenses in the most recent year.

However, compared to previous years, the interest coverage ratio in 2023 is still relatively robust. In 2020, the ratio was 2.62, and in 2019, it was 3.15. This indicates that Brink`s Co. has historically maintained a reasonable ability to meet its interest obligations.

Overall, while there has been a slight dip in the interest coverage ratio in 2023 compared to the previous years, Brink`s Co. still appears to have a solid capacity to cover its interest expenses. It would be important to monitor this ratio in the future to ensure that the company's ability to fulfill its interest payments remains stable.