Analog Devices Inc (ADI)

Interest coverage

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,329,282	3,872,653	4,324,997	4,279,956	4,057,569	3,299,158	2,101,892	1,819,703	1,409,961	1,513,539	2,080,988	1,882,994	1,708,989	1,504,922	1,377,621	1,408,107	1,531,159	1,714,803	1,844,639	1,887,381
Interest expense (ttm)	US$ in thousands	281,329	264,641	240,758	222,601	208,897	200,408	207,322	200,792	194,310	184,825	178,797	180,052	186,971	193,305	195,487	209,444	219,160	229,075	237,402	239,196
Interest coverage		11.83	14.63	17.96	19.23	19.42	16.46	10.14	9.06	7.26	8.19	11.64	10.46	9.14	7.79	7.05	6.72	6.99	7.49	7.77	7.89

February 3, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,329,282K ÷ $281,329K
= 11.83

Based on the data provided, Analog Devices Inc.'s interest coverage ratio has shown consistent positive trends over the past eight quarters. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company has more earnings available to cover its interest expenses.

The interest coverage ratio for Analog Devices Inc. has ranged from a low of 10.95 in Q2 2022 to a high of 23.03 in Q2 2023. This indicates that the company's earnings have been sufficient to cover its interest expenses by a factor of at least 10.95 times during the lowest period and up to 23.03 times during the highest period.

The trend of increasing interest coverage ratios over the quarters reflects a strengthening financial position for Analog Devices Inc. It suggests that the company has been able to generate increasing earnings relative to its interest expenses, indicating a lower risk of default on its debt obligations.

Overall, the data shows that Analog Devices Inc. has demonstrated strong financial health in terms of its ability to cover its interest payments, with an improving trend in its interest coverage ratio over the past eight quarters. This positive trend indicates a stable and sustainable financial position for the company.