Bunge Limited (BG)
Interest coverage
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,995,000 | 2,173,000 | 2,360,000 | 3,090,000 | 3,567,000 | 3,148,000 | 3,111,000 | 2,508,000 | 2,469,000 | 2,222,000 | 2,421,000 | 2,541,000 | 2,808,000 | 3,189,000 | 2,752,000 | 3,031,000 | 1,678,000 | 977,000 | -808,000 | -1,200,000 |
| Interest expense (ttm) | US$ in thousands | 471,000 | 500,000 | 506,000 | 512,000 | 516,000 | 471,000 | 441,000 | 404,000 | 403,000 | 365,000 | 319,000 | 281,000 | 243,000 | 254,000 | 253,000 | 261,000 | 265,000 | 285,000 | 315,000 | 341,000 |
| Interest coverage | 4.24 | 4.35 | 4.66 | 6.04 | 6.91 | 6.68 | 7.05 | 6.21 | 6.13 | 6.09 | 7.59 | 9.04 | 11.56 | 12.56 | 10.88 | 11.61 | 6.33 | 3.43 | -2.57 | -3.52 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,995,000K ÷ $471,000K
= 4.24
The interest coverage ratio of Bunge Limited has shown fluctuations over the reporting periods. The interest coverage ratio is a measure of a company's ability to pay its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.
From March 31, 2020, to June 30, 2022, the interest coverage ratio was negative, indicating that Bunge Limited was unable to cover its interest expenses with its operating income during these periods. This suggests a higher financial risk for the company during this timeframe.
However, starting from September 30, 2020, the interest coverage ratio turned positive and showed an increasing trend until March 31, 2023. This improvement indicates that Bunge Limited's operating income was able to cover its interest expenses during these periods, implying a lower risk of default on its debt obligations.
From June 30, 2023, the interest coverage ratio fluctuated within a range, showing some volatility but generally remained at a moderate level. Overall, Bunge Limited has demonstrated an ability to service its debt obligations with its operating income, but fluctuations in the interest coverage ratio suggest that monitoring its financial performance and debt management practices would be prudent.
Peer comparison
Dec 31, 2024