Brookfield Business (TSX:BBUC) Effective Interest Rate on Debt % : 9.39% (As of Mar. 2024)

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What is Brookfield Business Effective Interest Rate on Debt %?

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Brookfield Business's annualized positive value of Interest Expense for the quarter that ended in Mar. 2024 was C$1,137 Mil. Brookfield Business's average total debt for the quarter that ended in Mar. 2024 was C$12,107 Mil. Therefore, Brookfield Business's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2024 was 9.39%.

Brookfield Business Effective Interest Rate on Debt % Historical Data

The historical data trend for Brookfield Business's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Brookfield Business Effective Interest Rate on Debt % Chart

Brookfield Business Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Effective Interest Rate on Debt %

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6.81

6.94

3.16

5.09

7.73

Brookfield Business Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Effective Interest Rate on Debt %	Get a 7-Day Free Trial												6.28	8.85	8.96	-	9.39

Competitive Comparison of Brookfield Business's Effective Interest Rate on Debt %

For the Asset Management subindustry, Brookfield Business's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Brookfield Business's Effective Interest Rate on Debt % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield Business's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Brookfield Business's Effective Interest Rate on Debt % falls into.

Brookfield Business Effective Interest Rate on Debt % Calculation

Brookfield Business's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2023 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (A: Dec. 2022 )	+	Total Debt (A: Dec. 2023 ))	/ count )
=	-1 * -1177.925	/	( (18220.201	+	12255.516)	/ 2 )
=	-1 * -1177.925	/	15237.8585
=	7.73 %

where

	Total Debt (A: Dec. 2022 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	17553.178	+	667.023
=	18220.201

	Total Debt (A: Dec. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	11133.938	+	1121.578
=	12255.516

Brookfield Business's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2024 is calculated as

	Effective Interest Rate on Debt %
=	-1 * Interest Expense	/	( (Total Debt (Q: Dec. 2023 )	+	Total Debt (Q: Mar. 2024 ))	/ count )
=	-1 * -1137.024	/	( (12255.516	+	11959.056)	/ 2 )
=	-1 * -1137.024	/	12107.286
=	9.39 %

where

	Total Debt (Q: Dec. 2023 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	11133.938	+	1121.578
=	12255.516

	Total Debt (Q: Mar. 2024 )
=	Long-Term Debt & Capital Lease Obligation	+	Short-Term Debt & Capital Lease Obligation
=	11498.832	+	460.224
=	11959.056

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2024) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

Brookfield Business (TSX:BBUC) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Brookfield Business Effective Interest Rate on Debt % Related Terms

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Brookfield Business (TSX:BBUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Business Corp (TSX:BBUC) » Definitions » Effective Interest Rate on Debt %

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BBUC:USA

Address

1055 West Georgia Street, Suite 1500, P.O. Box 11117, Vancouver, BC, CAN, V6E 4N7

Website

https://www.bbu.brookfield.com

Brookfield Business Corp is a company established as a vehicle that owns and operates certain services and industrial operations on a global basis and an alternative vehicle for investors who prefer investing in its operations through a corporate structure. Its goal is to generate returns through long-term capital appreciation with a modest distribution yield.