CACI International Inc (CACI)

Interest coverage

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	649,708	567,500	496,329	539,451	457,696
Interest expense	US$ in thousands	105,059	83,861	41,757	39,836	56,059
Interest coverage		6.18	6.77	11.89	13.54	8.16

June 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $649,708K ÷ $105,059K
= 6.18

The interest coverage ratio for CACI International Inc has exhibited a decreasing trend over the past five years. In particular, the ratio decreased from 13.54 in June 2021 to 6.18 in June 2024. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time. A higher interest coverage ratio is generally considered favorable as it signifies a company's ability to comfortably meet its interest obligations. Therefore, the decreasing trend in CACI International Inc's interest coverage ratio warrants further investigation into the company's financial health and ability to service its debt obligations.