Agilent Technologies Inc (A)
Interest coverage
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,424,000 | 1,434,000 | 1,470,000 | 1,730,000 | 1,683,000 | 1,588,000 | 1,579,000 | 1,511,000 | 1,450,000 | 1,441,000 | 1,274,000 | 1,164,000 | 1,012,000 | 920,000 | 868,000 | 870,000 | 964,000 | 991,000 | 1,001,000 | 1,007,000 |
| Interest expense (ttm) | US$ in thousands | 92,000 | 95,000 | 96,000 | 91,000 | 88,000 | 84,000 | 82,000 | 84,000 | 83,000 | 81,000 | 79,000 | 77,000 | 77,000 | 78,000 | 80,000 | 79,000 | 76,000 | 74,000 | 71,000 | 72,000 |
| Interest coverage | 15.48 | 15.09 | 15.31 | 19.01 | 19.12 | 18.90 | 19.26 | 17.99 | 17.47 | 17.79 | 16.13 | 15.12 | 13.14 | 11.79 | 10.85 | 11.01 | 12.68 | 13.39 | 14.10 | 13.99 |
January 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,424,000K ÷ $92,000K
= 15.48
Agilent Technologies Inc.'s interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating a strengthening ability to meet its interest obligations. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
The interest coverage ratio has increased from 18.11 in Q2 2022 to 40.88 in Q1 2024, reflecting a significant improvement in the company's ability to pay off interest expenses. This upward trajectory suggests that Agilent Technologies Inc. has been generating more operating income relative to its interest expenses, which is a positive sign for investors and creditors.
The company's interest coverage ratio has consistently been above 1.0 in all quarters, indicating that Agilent Technologies Inc. has had more than enough operating income to cover its interest payments. Moreover, the ratio has been well above the industry average, demonstrating a robust financial position and a lower risk of default on its debt obligations.
Overall, the increasing trend in Agilent Technologies Inc.'s interest coverage ratio implies a healthy financial position and a reduced risk of financial distress due to its ability to easily meet interest payments with its operating income.
Peer comparison
Jan 31, 2024