Cirrus Logic Inc (CRUS)

Interest coverage ratio is a financial metric that measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that a company is more capable of servicing its debt through its operating income.

Looking at the data provided for Cirrus Logic Inc, we can see a consistent trend of increasing interest coverage ratios over the past few years. The interest coverage ratio for the fiscal year ending March 31, 2021, was 233.02, showing that the company generated over 233 times the amount of operating income needed to cover its interest expenses.

In the subsequent years, the interest coverage ratios continued to improve, reaching a high of 389.89 for the fiscal year ending March 31, 2022. This demonstrates the company's strong financial position and ability to comfortably meet its interest payments.

Although the interest coverage ratio for the fiscal year ending March 31, 2023, decreased slightly to 284.67, it still remains at a healthy level, indicating that Cirrus Logic Inc has a substantial margin of safety in meeting its interest obligations.

The interest coverage ratio for the fiscal year ending March 31, 2024, improved again to 386.51, showing the company's consistent ability to generate sufficient operating income to cover its interest expenses.

However, it is important to note that no interest coverage ratio was provided for the fiscal year ending March 31, 2025, as indicated by the symbol "—". This could mean that either there was a change in reporting or other factors that impacted the calculation of this ratio for that particular year.

Overall, based on the data provided, Cirrus Logic Inc's interest coverage ratios reflect a strong financial position and ability to manage its debt obligations effectively.

Peer comparison

Mar 31, 2025