Becton Dickinson and Company (BDX)

Interest coverage

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,451,000	2,078,000	2,066,000	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
Interest expense (ttm)	US$ in thousands	528,000	486,000	468,000	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
Interest coverage		4.64	4.28	4.41	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

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,451,000K ÷ $528,000K
= 4.64

The interest coverage ratio for Becton Dickinson and Company has shown a generally stable trend over the past few years, ranging between 2.42 to 5.84. This ratio indicates the company's ability to cover its interest expenses with its operating profits.

A higher interest coverage ratio, such as in the range of 4.64 to 5.84 seen in the recent quarters, suggests that Becton Dickinson is comfortably able to meet its interest obligations from its earnings. This is a positive sign for investors and lenders as it shows the company has a strong ability to service its debt.

However, it's also noteworthy that in some periods, like in the fourth quarter of 2019 and the first quarter of 2020, the interest coverage ratio was lower, at 2.42 and 2.54 respectively. This indicates a slightly weaker ability to cover interest payments from operating profits during those specific periods.

Overall, the consistent and relatively high interest coverage ratio of Becton Dickinson and Company indicates a generally healthy financial position with the ability to manage its interest expenses efficiently.