Box Inc (BOX)
Interest coverage
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 50,753 | 49,299 | 51,286 | 44,551 | 36,840 | 16,964 | -7,489 | -16,739 | -27,626 | -30,738 | -22,265 | -23,665 | -37,642 | -62,945 | -99,564 | -128,331 | -139,472 | -132,585 | -132,816 | -133,758 |
| Interest expense (ttm) | US$ in thousands | 773 | 1,198 | 1,526 | 1,802 | 2,111 | 2,427 | 2,910 | 3,407 | 3,913 | 4,441 | 4,944 | 5,398 | 5,753 | 5,936 | 5,832 | 5,324 | 4,483 | 3,095 | 1,830 | 931 |
| Interest coverage | 65.66 | 41.15 | 33.61 | 24.72 | 17.45 | 6.99 | -2.57 | -4.91 | -7.06 | -6.92 | -4.50 | -4.38 | -6.54 | -10.60 | -17.07 | -24.10 | -31.11 | -42.84 | -72.58 | -143.67 |
January 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $50,753K ÷ $773K
= 65.66
The interest coverage ratio for Box Inc has fluctuated significantly over the past several quarters. The ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
From the data provided, we can see that Box Inc's interest coverage ratio has generally been positive in recent quarters, with the most recent reading of 65.66 as of January 31, 2024, indicating a strong ability to cover interest payments with its earnings.
However, it is crucial to note that the interest coverage ratio was negative in some periods, such as in July 2022 and April 2022, suggesting that the company's earnings were not sufficient to cover its interest expenses during those quarters.
Overall, the trend in the interest coverage ratio for Box Inc shows improvements in recent quarters, indicating a better ability to handle interest obligations. An increasing interest coverage ratio is generally seen as a positive sign for investors and lenders, as it signifies a lower risk of default due to insufficient earnings to cover interest payments.
Peer comparison
Jan 31, 2024