Cirrus Logic Inc (CRUS)

Interest coverage

		Mar 31, 2024	Dec 31, 2023	Sep 23, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	343,466	228,248	202,080	212,548	249,031	419,738	422,532	401,511	366,338	283,177	268,653	237,610	237,182	222,459	165,488	188,011	173,480	170,606	142,168	111,070
Interest expense (ttm)	US$ in thousands	915	914	897	897	897	897	897	907	948	989	1,030	1,057	1,057	1,057	1,057	1,057	1,057	1,057	1,057	1,057
Interest coverage		375.37	249.72	225.28	236.95	277.63	467.94	471.05	442.68	386.43	286.33	260.83	224.80	224.39	210.46	156.56	177.87	164.12	161.41	134.50	105.08

March 31, 2024 calculation

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

The interest coverage ratio of Cirrus Logic Inc has shown fluctuations over the past few quarters. The ratio indicates the company's ability to cover its interest expenses with its operating profits.

The interest coverage ratio was highest in the first quarter of 2021, at 471.05, indicating a strong ability to meet interest obligations. However, the ratio has since declined and fluctuated, reaching a low of 105.08 in the second quarter of 2019, which may raise concerns about the company's ability to comfortably cover its interest expenses.

Overall, the recent interest coverage ratios suggest that Cirrus Logic Inc has generally been able to cover its interest expenses, but the fluctuations in the ratio warrant further analysis to understand the underlying reasons and potential impacts on the company's financial health.