Autodesk Inc (ADSK)

Interest coverage

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,210,000	1,128,000	1,090,000	1,012,000	992,000	989,000	855,000	792,000	698,000	618,000	659,400	634,400	632,500	629,100	578,500	521,100	448,800	343,000	249,500	153,600
Interest expense (ttm)	US$ in thousands	62,000	44,000	24,000	24,000	30,000	45,000	68,800	60,700	60,000	51,600	39,100	47,800	46,500	58,200	56,600	55,900	63,300	54,000	57,800	58,600
Interest coverage		19.52	25.64	45.42	42.17	33.07	21.98	12.43	13.05	11.63	11.98	16.86	13.27	13.60	10.81	10.22	9.32	7.09	6.35	4.32	2.62

April 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,210,000K ÷ $62,000K
= 19.52

Interest coverage, a key financial ratio used to assess a company's ability to meet its interest obligations, demonstrates Autodesk Inc's strong financial position over the past years. The trend of increasing interest coverage ratios from 2.62 in July 2019 to a peak of 45.42 in October 2023 indicates that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses. This signifies the company's ability to comfortably cover its interest payments, reflecting a lower financial risk.

Autodesk Inc's interest coverage ratio declined slightly to 19.52 in April 2024, but it still remains at a healthy level, well above the industry average. This strong interest coverage ratio suggests that the company has sufficient earnings to cover its interest expenses, even in challenging economic conditions. Overall, the consistent high levels of interest coverage over the analyzed periods reflect Autodesk Inc's financial stability and sound management of debt obligations.