H&R Block Inc (HRB)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 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 | Apr 30, 2021 | Mar 31, 2021 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 859,516 | 841,880 | 792,441 | 821,478 | 841,402 | 866,410 | 810,708 | 793,200 | 784,190 | 705,277 | 713,154 | 716,339 | 747,351 | 670,476 | 869,933 | 1,301,933 | 1,214,091 | 2,065,667 | 773,195 | 355,861 |
| Interest expense (ttm) | US$ in thousands | 78,113 | 78,061 | 79,445 | 79,057 | 79,080 | 79,175 | 75,403 | 73,024 | 72,978 | 75,728 | 77,176 | 81,276 | 88,282 | 75,196 | 73,001 | 82,893 | 82,396 | 98,412 | 107,722 | 97,078 |
| Interest coverage | 11.00 | 10.78 | 9.97 | 10.39 | 10.64 | 10.94 | 10.75 | 10.86 | 10.75 | 9.31 | 9.24 | 8.81 | 8.47 | 8.92 | 11.92 | 15.71 | 14.73 | 20.99 | 7.18 | 3.67 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $859,516K ÷ $78,113K
= 11.00
The interest coverage ratios for H&R Block Inc. over the specified period reveal a generally stable and favorable financial position regarding its ability to meet interest obligations. As of January 31, 2021, the ratio was 3.67, indicating that the company earned approximately 3.67 times its interest expenses, reflecting solid but relatively modest coverage at that time. The ratio then experienced a significant increase, reaching a peak of 20.99 on April 30, 2021, suggesting a substantial improvement in earnings relative to interest costs, likely driven by increased profitability or reduced interest expenses.
Following this peak, the interest coverage ratio declined somewhat but remained robust, with values such as 14.73 for June 30, 2021, and maintaining high levels throughout the subsequent periods. For instance, at the end of 2021, the ratio stood at 11.92, and it continued to fluctuate within a range of approximately 8.4 to 11.0 up to the most recent data points. This indicates that the company consistently generated earnings significantly exceeding its interest obligations, thus demonstrating a strong capacity to service debt.
The ratios from March 2022 through September 2024 reflect a relatively steady and healthy interest coverage, generally ranging from about 8.4 to 10.9. Notably, the interest coverage remained above 9.0 in most periods, underscoring stable profitability and liquidity.
Overall, H&R Block Inc.’s interest coverage metrics exhibit sustained, strong financial health with ample earnings to cover interest expenses multiple times over. This consistency suggests prudent financial management and a resilient earnings profile, providing reassurance regarding the company's ability to meet its interest obligations reliably across the observed timeframe.
Peer comparison
Jun 30, 2025