Brookfield Business (TSX:BBUC) Interest Coverage : N/A (As of Dec. 2023)

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What is Brookfield Business 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. Brookfield Business's Operating Income for the three months ended in Dec. 2023 was C$-134 Mil. Brookfield Business's Interest Expense for the three months ended in Dec. 2023 was C$0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Brookfield Business Corps earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for Brookfield Business's Interest Coverage or its related term are showing as below:

TSX:BBUC' s Interest Coverage Range Over the Past 10 Years
Min: 0.7 Med: 1.08 Max: 1.34
Current: 0.7

TSX:BBUC's Interest Coverage is ranked worse than
95.1% of 449 companies
in the Asset Management industry
Industry Median: 38.64 vs TSX:BBUC: 0.70

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

Brookfield Business Interest Coverage Historical Data

The historical data trend for Brookfield Business'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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Brookfield Business Interest Coverage Chart

Brookfield Business Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.29

1.09

1.07

0.84

0.71

Brookfield Business Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial											-	0.94	0.75	0.75	N/A

Competitive Comparison of Brookfield Business's Interest Coverage

For the Asset Management subindustry, Brookfield Business'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.

Brookfield Business's Interest Coverage Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield Business's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Brookfield Business's Interest Coverage falls into.

Brookfield Business 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.

Brookfield Business'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, Brookfield Business's Interest Expense was C$-1,178 Mil. Its Operating Income was C$833 Mil. And its Long-Term Debt & Capital Lease Obligation was C$11,134 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	833.134	/	-1177.925
	=	0.71

Brookfield Business's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Brookfield Business's Interest Expense was C$0 Mil. Its Operating Income was C$-134 Mil. And its Long-Term Debt & Capital Lease Obligation was C$11,134 Mil.

GuruFocus does not calculate Brookfield Business's interest coverage with the available data.

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

Brookfield Business (TSX:BBUC) 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 .

Brookfield Business Interest Coverage Related Terms

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

Brookfield Business (TSX:BBUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Business Corp (TSX:BBUC) » Definitions » Interest Coverage

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Traded in Other Exchanges

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.