Applied Materials Inc (AMAT)
Interest coverage
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,867,000 | 7,954,000 | 7,827,000 | 7,007,000 | 4,406,000 |
| Interest expense | US$ in thousands | 247,000 | 238,000 | 228,000 | 236,000 | 240,000 |
| Interest coverage | 31.85 | 33.42 | 34.33 | 29.69 | 18.36 |
October 27, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $7,867,000K ÷ $247,000K
= 31.85
The interest coverage ratio for Applied Materials Inc has been consistently healthy over the past five years, ranging from 18.36 to 34.33. This indicates the company's ability to comfortably meet its interest obligations through its earnings before interest and taxes. The upward trend in interest coverage from 2017 to 2020 reflects an improvement in the company's ability to pay its interest expenses. The significant increase in 2021 compared to the previous years indicates a notable enhancement in financial health, although a slight decrease was observed in 2024. Overall, Applied Materials Inc appears to have a strong capacity to cover its interest payments, which is a positive indicator for its financial stability and creditworthiness.
Peer comparison
Oct 27, 2024