H&R Block (H&R Block) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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. H&R Block's Operating Income for the three months ended in Dec. 2023 was $-267 Mil. H&R Block's Interest Expense for the three months ended in Dec. 2023 was $-21 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for H&R Block's Interest Coverage or its related term are showing as below:

HRB' s Interest Coverage Range Over the Past 10 Years
Min: 1.91 Med: 8.43 Max: 17.56
Current: 10.18

HRB's Interest Coverage is ranked better than
50% of 80 companies
in the Personal Services industry
Industry Median: 10.08 vs HRB: 10.18

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

H&R Block Interest Coverage Historical Data

The historical data trend for H&R Block'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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H&R Block Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Jun22

Jun23

Interest Coverage

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7.07

1.91

7.20

8.44

10.26

H&R Block Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	38.77	23.72	-	-

Competitive Comparison

For the Personal Services subindustry, H&R Block'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.

H&R Block Interest Coverage Distribution

For the Personal Services industry and Consumer Cyclical sector, H&R Block's Interest Coverage distribution charts can be found below:

* The bar in red indicates where H&R Block's Interest Coverage falls into.

H&R Block 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.

H&R Block's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, H&R Block's Interest Expense was $-73 Mil. Its Operating Income was $749 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,730 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	748.698	/	-72.978
	=	10.26

H&R Block's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, H&R Block's Interest Expense was $-21 Mil. Its Operating Income was $-267 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,499 Mil.

H&R Block did not have earnings to cover the interest expense.

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

H&R Block (NYSE:HRB) 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 .

H&R Block Interest Coverage Related Terms

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H&R Block (H&R Block) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » H&R Block Inc (NYSE:HRB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HRB:Germany HRB:Germany H1RB34:Brazil

Address

One H&R Block Way, Kansas City, MO, USA, 64105

Website

https://www.hrblock.com

H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public primarily in the United States, Canada, and Australia. The company mainly prepares tax returns for customers within the United States through its company-owned offices, franchise locations, and online tax software. The vast majority of H&R Block's offices are located in the U.S. The company derives most of its total revenue from the U.S. assisted tax preparation fees. Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also relatively significant.

Executives

Tony G Bowen	officer: Chief Financial Officer	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Kellie J Logerwell	officer: VP & Chief Acct Officer	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Jones Jeffrey J Ii	officer: President & CEO - Designate	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Richard A Johnson	director	FOOT LOCKER, INC., 112 WEST 34TH STREET, NEW YORK NY 10120
Robert A Gerard	director	161 DUANE ST, NEW YORK NY 10013
Karen A Orosco	officer: SVP, U.S. Retail	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Christianna Wood	director	330 OLD Y ROAD, GOLDEN CO 80401
Dara S Redler	officer: Chief Legal Officer	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Thomas A Gerke	officer: SVP and General Counsel	GERKE THOMAS A, OVERLAND PARK KS 66251
Mia Mends	director	5254 BIRDWOOD ROAD, HOUSTON TX 77096
Sean Cohan	director	675 SIXTH AVENUE, 3RD FLOOR, NEW YORK NY 10011
Yolande G Piazza	director	111 8TH AVENUE, NEW YORK NY 10011
Anuradha Gupta	director	564 PACIFIC AVENUE, SAN FRANCISCO CA 94133
Matthew E Winter	director	2775 SANDERS ROAD, NORTHBROOK IL 60062
Kathryn M Collins	officer: SVP & Chief Marketing Office	ONE H&R BLOCK WAY, KANSAS CITY MO 64105