Apple Inc (AAPL)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	123,216,000	117,669,000	122,034,000	111,852,000	69,964,000
Interest expense	US$ in thousands	—	3,933,000	2,931,000	2,645,000	2,873,000
Interest coverage		—	29.92	41.64	42.29	24.35

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $123,216,000K ÷ $—K
= —

The interest coverage ratio of Apple Inc has shown a generally positive trend over the past five years. In Sep 2020, the interest coverage ratio stood at 24.35, indicating that the company generated 24.35 times more operating income than it needed to cover its interest expenses.

Subsequently, the interest coverage ratio improved significantly in the following years, reaching 42.29 in Sep 2021 and demonstrating a strong ability to pay interest obligations from operating profits. This positive trend continued in Sep 2022, with the interest coverage ratio further increasing to 41.64.

However, in the most recent year, ending in Sep 2023, the interest coverage ratio slightly decreased to 29.92. While this is still a healthy level, the decrease may signal a slight decrease in the company's ability to cover interest expenses with operating income.

Overall, Apple Inc's interest coverage ratio has shown stability and strength over the years, indicating a robust financial position and ability to manage its interest obligations comfortably. Investors and stakeholders can view this trend positively, although it is essential to monitor any fluctuations in the ratio in the future.