Concentrix Corporation (CNXC)

Interest coverage

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	661,327	640,192	572,397
Interest expense	US$ in thousands	6,089	1,771	23,046
Interest coverage		108.61	361.49	24.84

November 30, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $661,327K ÷ $6,089K
= 108.61

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Concentrix Corp.'s interest coverage has fluctuated over the past five years. In 2023, the interest coverage was 3.29, indicating that the company's operating income was sufficient to cover its interest expenses by 3.29 times. This represents a decrease from the previous year's ratio of 9.14, suggesting a potential decrease in the company's ability to cover its interest expenses. However, it is important to note that the 2023 ratio is still higher than the ratios in 2020 and 2019, indicating an improvement in the company's ability to cover interest expenses compared to those years. Further investigation into the factors contributing to this change is warranted to assess the potential impact on the company's financial stability.