Analog Devices Inc (ADI)
Interest coverage
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,872,640 | 3,299,160 | 1,513,540 | 1,504,920 | 1,714,800 |
| Interest expense | US$ in thousands | 264,641 | 200,408 | 184,825 | 193,305 | 229,075 |
| Interest coverage | 14.63 | 16.46 | 8.19 | 7.79 | 7.49 |
October 28, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,872,640K ÷ $264,641K
= 14.63
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Analog Devices Inc.'s interest coverage ratio has shown a positive trend over the last five years, increasing from 8.25 in November 2019 to 17.84 in October 2023. This indicates that the company's ability to meet interest payments has improved, reflecting a stronger financial position. The sharp increase from 9.68 in October 2021 to 18.36 in October 2022 further underscores this positive trend. Overall, Analog Devices Inc.'s interest coverage ratio suggests that the company has ample earnings to cover its interest expenses, which is a favorable indicator for its financial health and stability.
Peer comparison
Oct 28, 2023