Box Inc (BOX)
Interest coverage
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 50,753 | 36,840 | -27,626 | -37,642 | -139,472 |
| Interest expense | US$ in thousands | 773 | 2,112 | 3,913 | 5,753 | 4,483 |
| Interest coverage | 65.66 | 17.44 | -7.06 | -6.54 | -31.11 |
January 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $50,753K ÷ $773K
= 65.66
The interest coverage ratio for Box Inc has shown significant fluctuations over the past five years. In January 2024, the interest coverage ratio improved to 65.66, indicating a strong ability to cover interest payments with operating income. This improvement is a positive sign for the company's financial health.
However, in the preceding years, the interest coverage ratio was more volatile and less favorable. In January 2023, the ratio stood at 17.44, suggesting that the company had a moderate level of income to cover its interest expenses. The ratios for January 2022, January 2021, and January 2020 were negative, indicating that Box Inc did not generate enough operating income to cover its interest obligations during those periods.
Overall, the recent improvement in the interest coverage ratio for Box Inc is a positive development, indicating better financial stability and the company's ability to meet its interest payment obligations. It is essential for stakeholders to continue monitoring this ratio to ensure ongoing financial health and sustainability.
Peer comparison
Jan 31, 2024