Becton Dickinson and Company (BDX)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,068,000 | 2,325,000 | 2,649,000 | 1,464,000 | 1,815,000 |
| Interest expense | US$ in thousands | 452,000 | 398,000 | 469,000 | 528,000 | 639,000 |
| Interest coverage | 4.58 | 5.84 | 5.65 | 2.77 | 2.84 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,068,000K ÷ $452,000K
= 4.58
The interest coverage ratio measures a company's ability to meet interest payments on its debt obligations. Becton Dickinson & Co.'s interest coverage has shown variations over the past five years. In 2023, the interest coverage ratio was 5.45, indicating a decrease from the previous year. This suggests that the company's ability to cover interest expenses with its earnings declined. However, the ratio remains above 1, indicating that the company's earnings are still sufficient to cover its interest payments. Comparing to the ratios of 2022 and 2021, the company exhibited relatively strong interest coverage, indicating the ability to comfortably meet its interest obligations. It's important to note that the declining trend in 2023 should be further investigated to ensure the company's long-term financial stability.
Peer comparison
Sep 30, 2023