Concentrix Corporation (CNXC)

Interest coverage

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	621,102	661,327	671,549	554,746	302,657
Interest expense	US$ in thousands	321,828	201,004	70,076	23,046	48,313
Interest coverage		1.93	3.29	9.58	24.07	6.26

November 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $621,102K ÷ $321,828K
= 1.93

Concentrix Corporation's interest coverage ratio has exhibited significant fluctuations over the past five years. In November 2020, the interest coverage ratio stood at 6.26, indicating that the company generated enough operating income to cover its interest expenses approximately six times. This ratio improved substantially in November 2021 to 24.07, reflecting a healthier financial position with significantly improved ability to cover interest payments.

However, there was a noticeable decline in the interest coverage ratio in November 2022 to 9.58, indicating a decrease in the company's ability to cover interest expenses compared to the previous year. This trend continued in November 2023 as the interest coverage ratio dropped further to 3.29, signaling potential financial challenges or increased debt burden affecting the company's ability to meet interest obligations comfortably.

By November 2024, Concentrix Corporation's interest coverage ratio decreased even more significantly to 1.93, suggesting a potentially heightened risk of financial distress due to the company's dwindling capacity to cover interest payments with its operating income. It is important for investors and stakeholders to closely monitor this declining trend in the interest coverage ratio, as it may indicate increasing financial leverage or operational inefficiencies that could impact the company's overall financial health and ability to meet its debt obligations.