H&R Block Inc (HRB)
Interest coverage
| 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 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 838,756 | 862,631 | -1,781 | -21,366 | -30,821 | -110,040 | 705,600 | 709,969 | 740,379 | 1,515,358 | 369,221 | 439,174 | 769,188 | 350,559 | 460,507 | 423,474 | 79,038 | 562,167 | 572,043 | 600,350 |
| Interest expense (ttm) | US$ in thousands | 79,080 | 79,175 | 75,403 | 73,024 | 72,978 | 75,728 | 77,176 | 81,276 | 88,282 | 91,212 | 89,799 | 97,575 | 106,870 | 112,731 | 116,703 | 107,148 | 96,094 | 90,519 | 87,047 | 86,932 |
| Interest coverage | 10.61 | 10.90 | -0.02 | -0.29 | -0.42 | -1.45 | 9.14 | 8.74 | 8.39 | 16.61 | 4.11 | 4.50 | 7.20 | 3.11 | 3.95 | 3.95 | 0.82 | 6.21 | 6.57 | 6.91 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $838,756K ÷ $79,080K
= 10.61
The interest coverage ratio for H&R Block Inc fluctuated over the periods provided, ranging from negative values to positive values. The interest coverage ratio measures a company's ability to pay its interest expenses on its outstanding debt with its operating income or earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of covering its interest obligations.
Looking at the data, we observe that H&R Block Inc had strong interest coverage in some periods such as Jun 30, 2024 (10.61) and Mar 31, 2024 (10.90). These ratios suggest that the company had sufficient earnings to cover its interest expenses comfortably during those periods.
However, there were instances of negative interest coverage ratios in certain quarters, such as Dec 31, 2023, Sep 30, 2023, and Jun 30, 2023. Negative interest coverage indicates that the company's earnings were insufficient to cover its interest expenses during those periods, which could potentially be a cause for concern.
It is important to consider the reasons behind the fluctuations in the interest coverage ratio, such as changes in interest rates, company profitability, or debt levels. Further analysis of the company's financial statements and business operations would provide a more comprehensive understanding of the factors influencing H&R Block Inc's interest coverage over time.
Peer comparison
Jun 30, 2024