Apple Inc (AAPL)

Interest coverage

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	123,216,000	121,625,000	120,004,000	121,416,000	117,669,000	115,153,000	115,207,000	116,725,000	122,034,000	120,470,000	121,719,000	119,570,000	111,852,000	103,467,000	92,267,000	77,478,000	69,964,000	71,366,000	70,309,000	71,220,000
Interest expense (ttm)	US$ in thousands	1,002,000	2,004,000	3,002,000	3,932,000	3,933,000	3,758,000	3,479,000	3,240,000	2,931,000	2,776,000	2,722,000	2,701,000	2,645,000	2,607,000	2,639,000	2,726,000	2,873,000	3,049,000	3,218,000	3,471,000
Interest coverage		122.97	60.69	39.97	30.88	29.92	30.64	33.11	36.03	41.64	43.40	44.72	44.27	42.29	39.69	34.96	28.42	24.35	23.41	21.85	20.52

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $123,216,000K ÷ $1,002,000K
= 122.97

The interest coverage ratio for Apple Inc has shown a generally positive trend over the past few quarters. It reflects the company's ability to meet its interest obligations from its operating income. The ratio peaked at 122.97 in September 2024, indicating a strong ability to cover interest expenses over 100 times.

Throughout the quarters, Apple's interest coverage ratio has remained comfortably above industry averages, suggesting a healthy financial position. The ratio gradually declined from the peak but has consistently remained at levels well above 20, demonstrating a robust ability to service its debt obligations.

Overall, the trend in Apple Inc's interest coverage ratio indicates a company with strong financial health, efficient operations, and a solid ability to manage its debt obligations effectively.