Brilliant Earth Group (Brilliant Earth Group) Interest Coverage : 0.91 (As of Dec. 2023)

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What is Brilliant Earth Group Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Brilliant Earth Group's Operating Income for the three months ended in Dec. 2023 was $1.2 Mil. Brilliant Earth Group's Interest Expense for the three months ended in Dec. 2023 was $-1.3 Mil. Brilliant Earth Group's interest coverage for the quarter that ended in Dec. 2023 was 0.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Brilliant Earth Group's Interest Coverage or its related term are showing as below:

BRLT' s Interest Coverage Range Over the Past 10 Years
Min: 0.87 Med: 5.15 Max: 5.38
Current: 0.87

BRLT's Interest Coverage is ranked worse than
93.13% of 757 companies
in the Retail - Cyclical industry
Industry Median: 7.85 vs BRLT: 0.87

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Brilliant Earth Group Interest Coverage Historical Data

The historical data trend for Brilliant Earth Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Brilliant Earth Group Interest Coverage Chart

Brilliant Earth Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

5.38

5.29

5.01

0.87

Brilliant Earth Group Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial											6.31	-	1.06	1.52	0.91

Competitive Comparison of Brilliant Earth Group's Interest Coverage

For the Luxury Goods subindustry, Brilliant Earth Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Brilliant Earth Group's Interest Coverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Brilliant Earth Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Brilliant Earth Group's Interest Coverage falls into.

Brilliant Earth Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Brilliant Earth Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Brilliant Earth Group's Interest Expense was $-5.1 Mil. Its Operating Income was $4.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $91.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4.482	/	-5.128
	=	0.87

Brilliant Earth Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Brilliant Earth Group's Interest Expense was $-1.3 Mil. Its Operating Income was $1.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $91.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1.198	/	-1.32
	=	0.91

The higher the ratio, the stronger the company's Financial Strength is.

Brilliant Earth Group (NAS:BRLT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Brilliant Earth Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Brilliant Earth Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Brilliant Earth Group (Brilliant Earth Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Brilliant Earth Group Inc (NAS:BRLT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 Grant Avenue, Third Floor, San Francisco, CA, USA, 94108

Website

https://www.brilliantearth.com

Brilliant Earth Group Inc designs, procures and sells ethically-sourced diamonds, gemstones and jewelry online and through showrooms. Its sales consist of revenue from diamond, gemstone, and jewelry retail sales. The company sells its products in the U.S. and other international countries, of which a majority of revenue is derived from the U.S.

Executives

Mainsail Gp Iii, Llc	10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701
Gavin Turner	director, 10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701
Jeffrey Chuenhong Kuo	officer: Chief Financial Officer	C/O BRILLIANT EARTH GROUP, INC., 300 GRANT AVENUE, 3RD FLOOR, SAN FRANCISCO CA 94108
Jennifer Noel Harris	director	13785 RESEARCH BLVD., SUITE 150, AUSTIN TX 78750
Ian Bickley	director	516 WEST 34TH STREET, NEW YORK NY 10001
Beth Tanara Gerstein	director, 10 percent owner, officer: Chief Executive Officer	C/O BRILLIANT EARTH GROUP, INC., 300 GRANT AVENUE, 3RD FLOOR, SAN FRANCISCO CA 94108
Eric Scott Grossberg	director, 10 percent owner, officer: Executive Chairman	C/O BRILLIANT EARTH GROUP, INC., 300 GRANT AVENUE, 3RD FLOOR, SAN FRANCISCO CA 94108
Just Rocks, Inc.	10 percent owner	300 GRANT AVENUE, THIRD FLOOR, SAN FRANCISCO CA 94108
Attica Jaques	director	MISSION ADVANCEMENT CORP., 2525 E CAMELBACK RD, STE 850, PHOENIX AZ 85016
Beth J Kaplan	director	1716 LOCUST STREET, DES MOINES IA 50309
Mainsail Partners Iii, L.p.	10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701
Mainsail Co-investors Iii, L.p.	10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701
Mainsail Incentive Program, Llc	10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701
Mainsail Management Company, Llc	10 percent owner	500 WEST 5TH STREET, SUITE 1100, AUSTIN TX 78701