Broadridge Financial Solutions Inc (BR)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,017,100	1,029,900	1,013,800	997,300	936,400	823,900	783,100	744,100	759,900	699,600	692,800	703,400	678,700	696,100	683,200	630,500	625,000	567,000	574,300	625,700
Interest expense (ttm)	US$ in thousands	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	62,600	59,000	54,000	49,800
Interest coverage		6.77	6.70	6.51	6.56	6.52	6.53	7.37	8.03	8.66	8.29	9.10	10.76	11.82	12.59	11.39	9.94	9.98	9.61	10.64	12.56

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,017,100K ÷ $150,300K
= 6.77

Broadridge Financial Solutions Inc has maintained a relatively stable and healthy interest coverage ratio over the past few years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.

Looking at the data provided, the interest coverage ratio for Broadridge Financial Solutions Inc has ranged from 6.51 to 12.59 over the past 20 quarters. The company's interest coverage ratio has generally remained above 6, indicating that it generates sufficient operating income to cover its interest expenses.

The highest interest coverage ratio was 12.59 in March 2021, which suggests a strong ability to service its debt obligations with its operating income at that time. The lowest interest coverage ratio was 6.51 in December 2023, which is still above the threshold of 1, indicating that the company is able to meet its interest payments comfortably.

Overall, Broadridge Financial Solutions Inc's interest coverage ratio trend indicates a solid financial position and the ability to manage its debt obligations effectively. It demonstrates the company's capacity to generate enough earnings to cover its interest expenses, which is essential for creditors and investors assessing the company's financial health and risk profile.