Autodesk Inc (ADSK)

Interest coverage

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,128,000	989,000	618,000	629,000	343,000
Interest expense	US$ in thousands	8,000	43,000	65,000	82,400	54,000
Interest coverage		141.00	23.00	9.51	7.63	6.35

January 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,128,000K ÷ $8,000K
= 141.00

Autodesk Inc's interest coverage has shown a positive trend over the past five years, indicating the company's ability to meet its interest payment obligations. The interest coverage ratio has significantly improved from 6.35 in 2020 to 141.00 in 2024, reflecting a strong financial position. This increasing trend suggests that Autodesk's earnings are sufficient to cover its interest expenses, providing a higher margin of safety for creditors and investors. The substantial improvement in the interest coverage ratio indicates improved profitability and financial stability for Autodesk Inc.