CACI International Inc (CACI)

Interest coverage

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands 764,185 649,708 567,500 496,329 539,451
Interest expense US$ in thousands 158,844 105,059 83,861 41,757 39,836
Interest coverage 4.81 6.18 6.77 11.89 13.54

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $764,185K ÷ $158,844K
= 4.81

The interest coverage ratio for CACI International Inc has exhibited a declining trend over the period from June 30, 2021 to June 30, 2025. Specifically, the ratio decreased from 13.54 times in 2021 to 11.89 times in 2022, indicating a reduction in the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT). The decline continued more markedly through 2023, where the interest coverage dropped to 6.77 times, signaling a further decrease in financial cushion.

This downward trend persisted into the subsequent years, with the ratio reaching 6.18 in 2024 and further declining to 4.81 in 2025. The significant reduction between 2021 and 2025 suggests that the company's earnings available to cover interest expenses have diminished substantially over this timeframe.

While the ratios remain above 1, indicating that CACI generally maintains sufficient earnings to cover its interest expenses, the decreasing trend raises considerations about potential future financial flexibility and the need to monitor whether this downward trajectory persists. A continued decline could imply that the company is facing increased pressure on its earnings relative to interest obligations, potentially impacting its creditworthiness and financial stability if the trend persists or accelerates.