Bellring Brands LLC (BRBR)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	387,700	287,300	161,100	79,600	87,400
Interest expense	US$ in thousands	58,300	66,900	49,200	43,200	54,700
Interest coverage		6.65	4.29	3.27	1.84	1.60

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $387,700K ÷ $58,300K
= 6.65

Bellring Brands LLC's interest coverage ratio has exhibited a positive trend over the past five years, indicating an improving ability to meet its interest payment obligations. The ratio has increased from 1.60 in 2020 to 6.65 in 2024, reflecting a significant enhancement in the company's capacity to cover its interest expense with operating income. This trend suggests that Bellring Brands LLC has been generating more operating income relative to its interest expenses, which is a positive indicator of financial health and stability. The consistent improvement in the interest coverage ratio is a reassuring sign for creditors and investors, as it indicates the company's increasing ability to service its debt obligations. Overall, the upward trajectory of Bellring Brands LLC's interest coverage ratio highlights a strengthening financial position and improved debt repayment capacity over the years.