Bellring Brands LLC (BRBR)

Interest coverage

		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	285,100	287,300	270,300	261,800	216,800	161,100	122,300	77,200	76,400	79,600	80,800	78,100	86,600	87,400
Interest expense (ttm)	US$ in thousands	65,100	66,900	67,200	65,800	57,500	49,200	42,400	36,000	38,800	43,200	47,100	52,900	55,900	54,700
Interest coverage		4.38	4.29	4.02	3.98	3.77	3.27	2.88	2.14	1.97	1.84	1.72	1.48	1.55	1.60

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $285,100K ÷ $65,100K
= 4.38

Interest coverage ratio is a key financial metric that indicates a company's ability to cover its interest expenses with operating profits. A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations.

For Bellring Brands Inc, the interest coverage ratio has been relatively stable over the past eight quarters, ranging from 3.98 to 5.23. This indicates that the company has consistently generated enough operating income to cover its interest expenses.

The trend shows a slight decline in the interest coverage ratio from Q2 2022 to Q1 2024, with a peak of 5.23 in Q2 2022 and a low of 3.98 in Q2 2023. Despite this fluctuation, the ratios are generally above 4, which is considered a healthy level.

Overall, Bellring Brands Inc has maintained a satisfactory interest coverage ratio over the analyzed period, demonstrating its ability to comfortably meet its interest payments with its earnings. Investors and creditors may find this consistent performance reassuring in terms of the company's financial stability and debt-paying ability.