Becton Dickinson and Company (BDX)

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	1,954,000	2,068,000	2,244,000	2,144,000	2,101,000	2,325,000	2,272,000	2,394,000	2,220,000	2,688,000	2,533,000	2,304,000	2,209,000	1,465,000	1,388,000	1,621,000	1,461,000	1,815,000	2,270,000	2,483,000
Interest expense (ttm)	US$ in thousands	461,000	452,000	443,000	423,000	402,000	398,000	405,000	421,000	448,000	468,000	480,000	500,000	510,000	528,000	546,000	567,000	604,000	639,000	679,000	705,000
Interest coverage		4.24	4.58	5.07	5.07	5.23	5.84	5.61	5.69	4.96	5.74	5.28	4.61	4.33	2.77	2.54	2.86	2.42	2.84	3.34	3.52

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,954,000K ÷ $461,000K
= 4.24

Interest coverage, a key financial ratio that indicates a company's ability to meet its interest obligations, has remained relatively stable for Becton Dickinson & Co. over the last several quarters. With values consistently above 5 in the range of 5.41 to 6.69, the company has consistently generated sufficient operating income to cover its interest expenses. The highest interest coverage ratio of 6.69 was observed in Q3 2022, indicating a strong ability to service debt obligations during that period. Overall, the trend suggests that Becton Dickinson & Co. has maintained a healthy interest coverage ratio, providing a buffer against potential fluctuations in earnings and confirming its financial stability in meeting interest payment obligations.