Broadcom Inc (AVGO)
Interest coverage
| Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | Feb 4, 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 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,463,000 | 13,076,000 | 13,144,000 | 14,187,000 | 16,207,000 | 15,953,000 | 15,834,000 | 15,220,000 | 14,225,000 | 12,820,000 | 11,209,000 | 9,790,000 | 8,519,000 | 7,464,000 | 6,346,000 | 5,137,000 | 4,014,000 | 3,542,000 | 3,440,000 | 3,705,000 |
| Interest expense (ttm) | US$ in thousands | 3,953,000 | 3,442,000 | 2,784,000 | 2,142,000 | 1,622,000 | 1,623,000 | 1,623,000 | 1,736,000 | 1,737,000 | 1,765,000 | 1,774,000 | 1,722,000 | 1,885,000 | 1,871,000 | 1,920,000 | 1,941,000 | 1,777,000 | 1,718,000 | 1,616,000 | 1,505,000 |
| Interest coverage | 3.41 | 3.80 | 4.72 | 6.62 | 9.99 | 9.83 | 9.76 | 8.77 | 8.19 | 7.26 | 6.32 | 5.69 | 4.52 | 3.99 | 3.31 | 2.65 | 2.26 | 2.06 | 2.13 | 2.46 |
November 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,463,000K ÷ $3,953,000K
= 3.41
Interest coverage is a financial ratio that measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing Broadcom Inc's interest coverage ratio over the past 20 reported quarters, we observe a fluctuating trend. The interest coverage ratio has generally been above 3, which indicates that Broadcom has been able to cover its interest expenses more than three times with its operating income.
The highest interest coverage ratio was reported in Feb 4, 2024, at 6.62, indicating a strong ability to meet interest obligations. The lowest interest coverage ratio was reported in Feb 2, 2020, at 2.06, suggesting a relatively weaker ability to cover interest expenses during that period.
Overall, Broadcom's interest coverage ratios have shown variability over the quarters, with some fluctuations in the company's ability to cover its interest payments. It is essential for stakeholders to monitor this ratio to assess Broadcom's financial health and ability to meet its debt obligations in the future.
Peer comparison
Nov 3, 2024