Apple Inc (AAPL)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 69,313,000 | 69,665,000 | 71,018,000 |
| Interest expense (ttm) | US$ in thousands | 2,930,000 | 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 | 3,576,000 | 3,634,000 | 3,614,000 |
| Interest coverage | 41.44 | 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 | 19.38 | 19.17 | 19.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $121,416,000K ÷ $2,930,000K
= 41.44
The interest coverage ratio for Apple Inc has shown a generally healthy trend over the periods indicated. The ratio measures the company's ability to meet its interest obligations with operating income, with higher values indicating a stronger ability to cover interest expenses.
Based on the data provided, Apple Inc's interest coverage ratio has been consistently well above 20 over the past few years, indicating a strong ability to meet its interest obligations. The company's interest coverage ratio has ranged from 19.17 to 44.72 during the periods shown, with the highest coverage ratio observed in the most recent period.
Overall, the trend in Apple Inc's interest coverage ratio suggests a solid financial position with sufficient operating income to cover its interest expenses. Investors and creditors may view this positively as it indicates the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023