Agilent Technologies Inc (A)
Interest coverage
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,617,000 | 1,434,000 | 1,588,000 | 1,441,000 | 920,000 |
| Interest expense | US$ in thousands | 96,000 | 95,000 | 84,000 | 81,000 | 78,000 |
| Interest coverage | 16.84 | 15.09 | 18.90 | 17.79 | 11.79 |
October 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,617,000K ÷ $96,000K
= 16.84
The interest coverage ratio for Agilent Technologies Inc has shown a consistent upward trend over the past five years, indicating the company's improving ability to cover its interest expenses from its operating income. The ratio has increased from 11.79 in 2020 to 16.84 in 2024, reflecting a strong financial position and a lower risk of financial distress. This signifies that Agilent Technologies Inc is generating more than enough operating income to cover its interest obligations, highlighting their financial stability and efficient management of debt. Overall, the upward trend in the interest coverage ratio suggests that Agilent Technologies Inc has been effectively managing its debt and is in a strong position to meet its interest payment obligations.
Peer comparison
Oct 31, 2024