Bristol-Myers Squibb Company (BMY)

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	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	5,610,000	7,011,000	7,666,000	6,327,000
Interest expense (ttm)	US$ in thousands	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	656,000	425,000	260,000	182,000
Interest coverage		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	8.55	16.50	29.48	34.76

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,591,000K ÷ $1,166,000K
= 8.23

The interest coverage ratio for Bristol-Myers Squibb Co. has shown a generally positive trend over the past eight quarters. The company's ability to cover its interest expenses improved from 5.34 in Q1 2022 to 7.84 in Q1 2023, indicating a strengthened ability to meet its interest obligations. This suggests that Bristol-Myers Squibb Co. has sufficient operating income to cover its interest payments comfortably. However, it is essential to note that a higher interest coverage ratio is generally preferred by investors and creditors, as it indicates a lower risk of default on debt obligations. Overall, the consistent improvement in the interest coverage ratio reflects positively on the financial health and stability of Bristol-Myers Squibb Co.