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.