Applied Materials Inc (AMAT)
Interest coverage
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,403,000 | 8,587,000 | 8,511,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 247,000 | 239,000 | 236,000 | 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 |
| Interest coverage | 34.02 | 35.93 | 36.06 | 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 |
October 27, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,403,000K ÷ $247,000K
= 34.02
The interest coverage ratio for Applied Materials Inc has shown a generally positive trend over the past few years, indicating the company's ability to meet its interest obligations from its operating income. The ratio has consistently remained above 15, which is a healthy sign for investors and creditors as it shows that the company is generating sufficient earnings to cover its interest expenses.
The ratio peaked at 36.06 in Apr 28, 2024, and has maintained levels above 30 in the most recent periods, with the latest figure standing at 34.02 as of Oct 27, 2024. This upward trend demonstrates the company's strong financial position and its capacity to comfortably service its debt obligations.
Overall, the interest coverage ratio analysis suggests that Applied Materials Inc has a solid ability to cover its interest payments and is in a favorable position to meet its financial commitments in the foreseeable future.
Peer comparison
Oct 27, 2024