Applied Materials Inc (AMAT)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,220,000 | 7,979,000 | 7,842,000 | 7,849,000 | 7,874,000 | 8,294,000 | 8,353,000 | 8,530,000 | 8,429,000 | 7,933,000 | 7,873,000 | 7,613,000 | 7,767,000 | 7,895,000 | 7,990,000 | 7,944,000 | 7,846,000 | 7,746,000 | 7,718,000 | 7,776,000 |
| Interest expense (ttm) | US$ in thousands | 259,000 | 258,000 | 251,000 | 244,000 | 240,000 | 236,000 | 235,000 | 234,000 | 235,000 | 236,000 | 312,000 | 313,000 | 312,000 | 309,000 | 232,000 | 236,000 | 235,000 | 236,000 | 236,000 | 230,000 |
| Interest coverage | 31.74 | 30.93 | 31.24 | 32.17 | 32.81 | 35.14 | 35.54 | 36.45 | 35.87 | 33.61 | 25.23 | 24.32 | 24.89 | 25.55 | 34.44 | 33.66 | 33.39 | 32.82 | 32.70 | 33.81 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,220,000K ÷ $259,000K
= 31.74
Applied Materials Inc's interest coverage ratio shows a consistent pattern over the analyzed period. The ratio stayed above 30x, indicating the company's strong ability to cover its interest expenses with its operating income. It peaked at 36.45x on January 31, 2024, suggesting a robust financial position and a healthy interest coverage capability. However, there was a slight decline in interest coverage towards the end of the period, reaching a low of 30.93x on October 31, 2024. This decline could be a point of concern and may require further monitoring to ensure the company's ability to comfortably meet its interest obligations. Overall, the interest coverage ratios indicate that Applied Materials Inc has been effectively managing its interest expenses relative to its operating income.
Peer comparison
Jan 31, 2025