Brinks Company (BCO)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	430,700	458,700	384,400	374,600	350,800	357,200	364,300	342,300	337,700	302,300	294,900	213,000	169,100	107,900	88,800	143,800	180,600	208,100	222,500	101,100
Interest expense (ttm)	US$ in thousands	203,800	195,300	176,200	157,500	138,800	124,200	117,100	112,900	112,200	109,200	108,700	103,700	96,500	92,300	88,100	87,600	90,600	87,500	81,600	74,700
Interest coverage		2.11	2.35	2.18	2.38	2.53	2.88	3.11	3.03	3.01	2.77	2.71	2.05	1.75	1.17	1.01	1.64	1.99	2.38	2.73	1.35

December 31, 2023 calculation

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

To analyze Brink`s Co. interest coverage based on the provided data, we observe a consistent trend over the eight quarters shown. The interest coverage ratios have varied between 2.88 and 3.75, indicating the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT).

The declining trend from Q1 2022 to Q2 2023 may suggest increased interest burden relative to EBIT over this period. However, it is worth noting that the interest coverage ratios remain above 2.5 in all quarters, indicating a generally healthy ability to cover interest expenses with operating profits.

The average interest coverage ratio over the eight quarters is approximately 3.24, which indicates that Brink`s Co. has, on average, earnings that are over three times higher than its interest expenses. This implies a strong ability to service its debt obligations through operational earnings.

Overall, Brink`s Co. has maintained a relatively stable interest coverage ratio over the past two years, suggesting a solid financial position in terms of servicing its interest payments. However, it is important to continue monitoring this ratio to ensure ongoing financial stability.