Bristol-Myers Squibb Company (BMY)

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	-20,004,000	-14,471,000	-9,531,000	-4,556,000	9,591,000	9,751,000	9,846,000	9,972,000	8,927,000	8,958,000	8,931,000	8,545,000	9,412,000	-2,865,000	-2,747,000	-2,645,000	-5,471,000	4,779,000	3,727,000	3,640,000
Interest expense (ttm)	US$ in thousands	1,947,000	1,767,000	1,542,000	1,303,000	1,166,000	1,144,000	1,163,000	1,194,000	1,232,000	1,261,000	1,290,000	1,307,000	1,334,000	1,366,000	1,384,000	1,411,000	1,420,000	1,344,000	1,207,000	973,000
Interest coverage		-10.27	-8.19	-6.18	-3.50	8.23	8.52	8.47	8.35	7.25	7.10	6.92	6.54	7.06	-2.10	-1.98	-1.87	-3.85	3.56	3.09	3.74

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-20,004,000K ÷ $1,947,000K
= -10.27

The interest coverage ratio measures a company's ability to meet its interest payment obligations on its debt. A higher ratio indicates a greater capacity to cover interest expenses from operating income.

Based on the provided data for Bristol-Myers Squibb Company:
- The interest coverage ratio fluctuated over the period, starting at 3.74 in March 2020 and reaching a low of -10.27 in December 2024.
- There were periods of negative interest coverage, indicating that the company's operating income was insufficient to cover its interest expenses during those quarters.
- The ratio improved significantly in the later quarters, with a notable increase from 6.54 in March 2022 to 8.52 in September 2023.
- Despite fluctuations, the interest coverage ratio generally remained relatively stable around positive values, demonstrating Bristol-Myers Squibb's ability to manage its interest obligations, especially in the most recent periods.
- The significant increase in the interest coverage ratio observed towards the end of the period suggests an improvement in the company's financial health and its ability to comfortably meet interest payments from its operating profits.

In conclusion, although there were fluctuations and occasional negative ratios, Bristol-Myers Squibb Company generally displayed an improving trend in its interest coverage over the period, reflecting a positive ability to meet its financial commitments.