Bellring Brands LLC (BRBR)

Interest coverage

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

September 30, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $287,300K ÷ $66,900K
= 4.29

The interest coverage ratio for Bellring Brands Inc has been consistently positive over the past few years, indicating the company's ability to meet its interest payment obligations from its operating profits. The ratio has shown a steady improvement from 3.00 in 2020 to 4.29 in 2023. This trend suggests that the company's earnings have been sufficient to cover its interest expenses, reflecting positively on its financial stability. It's worth noting that having a higher interest coverage ratio demonstrates a lower risk of defaulting on its debt, which is favorable for the company's creditors and investors. Overall, the upward trend in the interest coverage ratio reflects Bellring Brands Inc's improved ability to service its debt over the years.