CommVault Systems Inc (CVLT)

Interest coverage

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	80,637	83,913	-14,890	43,523	-21,235
Interest expense	US$ in thousands	416	415	472	109	127,314
Interest coverage		193.84	202.20	-31.55	399.29	-0.17

March 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $80,637K ÷ $416K
= 193.84

CommVault Systems Inc's interest coverage ratio has been fluctuating over the recent years. As of March 31, 2021, the company had a negative interest coverage ratio of -0.17, indicating that its earnings were insufficient to cover its interest expenses. This is a concerning sign as it suggests a high level of financial risk.

However, in the following year, as of March 31, 2022, the interest coverage ratio improved significantly to 399.29, showcasing a strong ability to meet its interest obligations with its operating income. This indicates a healthier financial position and reduced risk of default.

In the subsequent years, the interest coverage ratio deteriorated, with values of -31.55 as of March 31, 2023, 202.20 as of March 31, 2024, and 193.84 as of March 31, 2025. These fluctuations suggest some level of volatility in the company's ability to cover its interest expenses.

Overall, CommVault Systems Inc's interest coverage ratio has shown both strengths and weaknesses over the analyzed period, emphasizing the importance of consistent monitoring of the company's financial health and operational performance.