Analog Devices Inc (ADI)

Interest coverage

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,032,800	3,872,640	3,299,160	1,513,540	1,504,920
Interest expense	US$ in thousands	322,227	264,641	200,408	184,825	193,305
Interest coverage		6.31	14.63	16.46	8.19	7.79

November 2, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,032,800K ÷ $322,227K
= 6.31

Interest coverage measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a better ability to meet interest obligations. Looking at the trend for Analog Devices Inc over the past five years, we see a fluctuation in the interest coverage ratio. The ratio was highest in October 2022 at 16.46, indicating strong coverage of interest payments. However, it decreased in the following year to 8.19, suggesting a slight decline in the company's ability to cover interest expenses. In the most recent year, as of November 2024, the interest coverage ratio stands at 6.31, indicating a further decrease in the company's ability to cover interest payments compared to the previous year. Overall, the trend in Analog Devices Inc's interest coverage ratio shows some variability over the years, with the company demonstrating strong coverage in some years but experiencing some decrease in recent years.