H&R Block Inc (HRB)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 838,756 | 776,090 | 740,379 | 769,185 | 79,038 |
| Interest expense | US$ in thousands | 79,080 | 72,978 | 88,282 | 106,870 | 96,094 |
| Interest coverage | 10.61 | 10.63 | 8.39 | 7.20 | 0.82 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $838,756K ÷ $79,080K
= 10.61
Interest coverage, a key financial ratio that indicates a company's ability to meet its interest obligations, has shown a positive trend for H&R Block Inc over the past five years. The ratio has consistently been above 1, indicating that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.
Specifically, the interest coverage ratio for H&R Block Inc was 10.61 as of June 30, 2024, slightly lower than the previous year's ratio of 10.63. This means that the company's EBIT was able to cover its interest expense by approximately 10.61 times during the most recent fiscal year, indicating a healthy financial position.
Looking back at previous years, the trend shows a gradual improvement in interest coverage ratios, with ratios of 8.39 in 2022, 7.20 in 2021, and a significant increase from 0.82 in 2020. This positive trend suggests that H&R Block Inc has been able to strengthen its ability to meet its interest obligations over time.
Overall, the consistent and increasing interest coverage ratios reflect a favorable financial performance for H&R Block Inc, indicating that the company has been effectively managing its interest expenses and generating sufficient earnings to cover these obligations.
Peer comparison
Jun 30, 2024