Applied Materials Inc (AMAT)
Interest coverage
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,296,000 | 7,954,000 | 7,730,000 | 7,781,000 | 7,865,000 | 7,827,000 | 7,884,000 | 8,004,000 | 7,688,000 | 7,007,000 | 6,246,000 | 5,310,000 | 4,643,000 | 4,406,000 | 4,003,000 | 3,742,000 | 3,622,000 | 3,506,000 | 3,542,000 | 3,838,000 |
| Interest expense (ttm) | US$ in thousands | 238,000 | 238,000 | 237,000 | 233,000 | 230,000 | 228,000 | 228,000 | 229,000 | 232,000 | 236,000 | 238,000 | 242,000 | 242,000 | 240,000 | 240,000 | 237,000 | 236,000 | 237,000 | 238,000 | 239,000 |
| Interest coverage | 34.86 | 33.42 | 32.62 | 33.39 | 34.20 | 34.33 | 34.58 | 34.95 | 33.14 | 29.69 | 26.24 | 21.94 | 19.19 | 18.36 | 16.68 | 15.79 | 15.35 | 14.79 | 14.88 | 16.06 |
January 28, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,296,000K ÷ $238,000K
= 34.86
Applied Materials Inc. has consistently maintained a high level of interest coverage, with varying but generally stable ratios ranging from 32.15 to 34.46 over the past 8 quarters. This indicates that the company's earnings before interest and taxes (EBIT) are well above its interest expenses, reflecting a strong ability to meet its interest payment obligations. The high and consistent interest coverage ratio suggests that Applied Materials Inc. has a solid financial position and is at a low risk of defaulting on its debt payments. Investors and creditors can view this as a positive sign of the company's financial health and ability to manage its debt effectively.
Peer comparison
Jan 28, 2024