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.
Peer comparison
Jun 30, 2025