Broadridge Financial Solutions Inc (BR)

Interest coverage

Jun 30, 2025 Mar 31, 2025 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 693,100 1,139,100 1,097,700 1,012,800 1,025,100 1,033,300 1,017,100 997,400 932,300 819,800 779,000 745,800 765,700 778,700 761,600 768,400 753,700 709,900 707,300 651,800
Interest expense (ttm) US$ in thousands 132,600 141,700 146,400 149,800 150,300 153,700 155,800 152,100 143,700 126,200 106,200 92,700 87,700 84,400 76,100 65,400 57,400 55,300 60,000 63,400
Interest coverage 5.23 8.04 7.50 6.76 6.82 6.72 6.53 6.56 6.49 6.50 7.34 8.05 8.73 9.23 10.01 11.75 13.13 12.84 11.79 10.28

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $693,100K ÷ $132,600K
= 5.23

The interest coverage ratios of Broadridge Financial Solutions Inc. over the period from September 2020 to June 2025 exhibit a pattern of overall stability with some fluctuations. Initially, the ratio was approximately 10.28x as of September 30, 2020, indicating a robust ability to cover interest expenses multiple times over. The ratio experienced an increasing trend through 2020 and into early 2021, reaching a peak of approximately 13.13x in June 2021. During this period, the company’s relative capacity to meet interest obligations was notably strong.

Subsequently, the ratio showed a gradual decline, falling to about 6.50x by March 2023. This decrease reflects a reduced margin of safety in covering interest expenses, potentially due to either increased interest obligations or a decline in earnings before interest and taxes (EBIT). Despite this downward trend, the interest coverage ratio remained above 6.0x, indicating that the company's earnings were still sufficient to service interest payments comfortably.

From the latter part of 2023 onward, the ratio exhibited modest fluctuations, stabilizing around the 6.5x to 7.5x range. Notably, in December 2024, the ratio increased slightly to 7.50x, and prospects into mid-2025 suggest it may slightly decline again before reaching approximately 5.23x in June 2025.

Overall, the analysis indicates that Broadridge Financial Solutions Inc. has maintained a stable and adequate ability to cover interest expenses throughout the observed period. Although there was a downward trend from mid-2021, the ratios have not fallen to levels that would typically raise immediate concerns regarding solvency or interest payment capacity. The company's interest coverage remains well above the common concern thresholds, reflecting prudent financial management and a consistent ability to meet debt obligations.