Cirrus Logic Inc (CRUS)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	343,466	255,637	369,611	246,303	182,323
Interest expense	US$ in thousands	915	898	948	1,057	1,057
Interest coverage		375.37	284.67	389.89	233.02	172.49

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $343,466K ÷ $915K
= 375.37

Cirrus Logic Inc's interest coverage has shown a positive trend over the past five years, indicating the company's ability to meet its interest payment obligations from its operating profits. The interest coverage ratio has consistently improved from 172.49 in March 2020 to 375.37 in March 2024. This increase suggests that Cirrus Logic Inc has been generating significantly more operating income relative to its interest expenses, which is a favorable sign of financial health and stability. The company's interest coverage ratio peaked in March 2022 at 389.89 and remained strong in subsequent years, reflecting a robust capacity to service its debt. Overall, the upward trajectory of Cirrus Logic Inc's interest coverage indicates a sound financial position and efficient management of debt obligations.