Bristow Group Inc (VTOL)
Interest coverage
| 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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 75,623 | 100,392 | 108,892 | 41,684 | 6,499 | -8,796 | -23,379 | 13,217 | 21,949 | 20,614 | 27,146 | 28,977 | 26,922 | 19,338 | 3,454 | -11,106 | -12,769 | 288,300 | 287,413 | 275,968 |
| Interest expense (ttm) | US$ in thousands | 37,581 | 39,791 | 40,139 | 40,625 | 41,417 | 40,600 | 40,600 | 40,971 | 40,948 | 40,721 | 41,139 | 41,521 | 43,388 | 46,361 | 49,380 | 51,260 | 42,591 | 32,905 | 42,175 | 56,379 |
| Interest coverage | 2.01 | 2.52 | 2.71 | 1.03 | 0.16 | -0.22 | -0.58 | 0.32 | 0.54 | 0.51 | 0.66 | 0.70 | 0.62 | 0.42 | 0.07 | -0.22 | -0.30 | 8.76 | 6.81 | 4.89 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $75,623K ÷ $37,581K
= 2.01
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings. A higher ratio indicates a stronger ability to meet interest payments.
For Bristow Group Inc, the interest coverage ratio fluctuated significantly over the analyzed period. It ranged from a low of -0.58 on June 30, 2023, to a high of 8.76 on September 30, 2020. Negative ratios, such as those observed in some quarters, indicate that the company's earnings were insufficient to cover its interest obligations during those periods.
The trend in the interest coverage ratio shows a general improvement from the negative territory in 2020 and 2021 to positive levels in subsequent years. However, fluctuations continued to occur, suggesting potential volatility in the company's ability to cover its interest expenses with operating income.
Overall, the interest coverage ratio for Bristow Group Inc indicates some level of financial risk due to the variability in earnings relative to interest payments. It would be important for stakeholders to closely monitor this ratio to ensure the company's ability to meet its debt obligations.