Analog Devices Inc (ADI)

Interest coverage

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,052,976	2,126,960	2,579,808	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
Interest expense (ttm)	US$ in thousands	322,227	311,013	295,180	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
Interest coverage		6.37	6.84	8.74	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

November 2, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,052,976K ÷ $322,227K
= 6.37

Analog Devices Inc has shown a generally stable and adequate interest coverage ratio over the provided periods, with values ranging from 6.37 to 19.42. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.

The trend indicates an improving interest coverage ratio, starting at 6.37 in Nov 2, 2024, and peaking at 19.42 in Jan 28, 2023. This upward trend suggests that the company's operating income has been consistently sufficient to cover its interest expenses.

Furthermore, the interest coverage ratio has consistently remained above 1, indicating that Analog Devices Inc generated more than enough operating income to cover its interest payments. This signifies a lower financial risk for creditors and potential investors.

Overall, the trend of increasing interest coverage ratios reflects the company's improving financial health and ability to comfortably meet its interest obligations over the analyzed periods.