Brinks Company (BCO)

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	501,700	439,600	367,200	336,600	166,200
Interest expense	US$ in thousands	235,400	203,800	138,800	112,200	96,500
Interest coverage		2.13	2.16	2.65	3.00	1.72

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $501,700K ÷ $235,400K
= 2.13

Brinks Company's interest coverage ratio has shown variability over the past five years. The ratio was 1.72 on December 31, 2020, indicating that the company's operating income was only sufficient to cover its interest expense 1.72 times. However, there was a significant improvement in the ratio to 3.00 on December 31, 2021, suggesting the company's ability to cover its interest payments improved.

The ratio then decreased to 2.65 on December 31, 2022, and further declined to 2.16 on December 31, 2023. This downward trend may raise some concerns about the company's ability to generate enough operating income to cover its interest obligations.

The most recent data point, with an interest coverage ratio of 2.13 on December 31, 2024, indicates a slight decrease compared to the previous year. While the ratio is still above 1, signaling that the company is generating enough earnings to cover its interest expenses, the decreasing trend warrants monitoring to ensure the company's financial health and ability to fulfill its debt obligations.