Bellring Brands LLC (BRBR)

Interest coverage

		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	387,700	353,700	318,100	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	58,300	59,900	62,800	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		6.65	5.90	5.07	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

September 30, 2024 calculation

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

The interest coverage ratio of Bellring Brands LLC has been consistently improving over the past several quarters. It indicates the company's ability to meet its interest obligations with its operating income.

The trend shows a steady increase in the interest coverage ratio from 1.60 in September 2020 to 6.65 in September 2024, reflecting that the company's operating income is more than sufficient to cover its interest expenses. This portrays a positive sign of financial health and stability for Bellring Brands LLC.

The rising interest coverage ratio suggests that the company is in a better position to service its debt, indicating lower financial risk and improved profitability. This trend could be the result of enhanced operational efficiency, increased revenue, cost management, or a combination of these factors.

Overall, the trend in Bellring Brands LLC's interest coverage ratio highlights a positive financial performance and ability to manage its debt obligations effectively, which can be reassuring for stakeholders and investors.