Brinks Company (BCO)

Solvency ratios

	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
Debt-to-assets ratio	0.49	0.51	0.51	0.51	0.51	0.55	0.53	0.51	0.51	0.49	0.48	0.47	0.45	0.49	0.50	0.46	0.41	0.45	0.44	0.44
Debt-to-capital ratio	0.89	0.87	0.86	0.87	0.88	0.94	0.93	0.93	0.96	0.96	0.94	0.96	0.95	0.96	0.96	0.96	0.89	0.91	0.90	0.91
Debt-to-equity ratio	8.21	6.92	6.01	6.66	7.32	16.13	12.73	12.34	23.10	22.25	15.53	24.32	18.12	26.74	21.23	26.50	8.11	9.82	8.54	9.66
Financial leverage ratio	16.61	13.54	11.84	13.06	14.24	29.27	24.21	23.96	45.26	45.74	32.06	52.01	39.87	54.48	42.87	57.33	19.62	21.88	19.22	21.79

The solvency ratios of Brink's Co. provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt to finance its operations.

The Debt-to-assets ratio remained relatively stable around 0.54 to 0.55 during 2023, indicating that over half of Brink's Co.'s assets are financed by debt on average. This suggests a moderate level of leverage in the company's capital structure.

The Debt-to-capital ratio, which reflects the proportion of debt in the company's capital structure, also remained relatively consistent around 0.87 to 0.90 during 2023. This indicates that approximately 87% to 90% of Brink's Co.'s capital is financed by debt, highlighting a significant reliance on borrowed funds.

The Debt-to-equity ratio showed fluctuations during the year, ranging from 6.41 to 8.89, with a notable decrease in Q2 2023 compared to Q1 2023. This ratio suggests that Brink's Co. has varying levels of financial leverage, with higher ratios indicating a higher proportion of debt relative to equity in the company's financing mix.

The Financial leverage ratio, which measures the company's total assets relative to its equity, also displayed fluctuations in 2023, with values ranging from 11.84 to 16.61. Higher values of the financial leverage ratio imply a higher degree of financial risk due to increased reliance on debt financing.

Overall, the solvency ratios of Brink's Co. indicate a moderate to high level of leverage in its capital structure throughout 2023, with fluctuations observed in the Debt-to-equity and Financial leverage ratios. It is essential for stakeholders to monitor these ratios to assess the company's long-term financial health and risk profile.

Coverage ratios

	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
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

Brink`s Co.'s interest coverage ratio has been fluctuating over the past eight quarters. The ratio has ranged from a low of 2.88 in Q2 2023 to a high of 3.75 in Q2 2022. Generally, a higher interest coverage ratio indicates the company's ability to meet its interest obligations using its operating income.

The trend indicates a slight decline in interest coverage ratio from Q2 2022 to Q2 2023, although the ratios remain above 3 in all quarters. This suggests that Brink`s Co. has sufficient earnings to cover its interest expenses comfortably.

It is important to note that a consistent and strong interest coverage ratio is a positive sign for investors and creditors as it signifies that the company is financially stable and capable of servicing its debt obligations. However, management should continue to monitor the trend and ensure the company's profitability to sustain the interest coverage ratio at a healthy level.