CommVault Systems Inc (CVLT)

Interest coverage

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	81,055	75,263	82,680	84,764	83,607	23,395	15,222	6,131	-3,889	41,240	39,355	29,999	37,358	43,803	45,728	49,841	41,908	24,236	11,492	11,659
Interest expense (ttm)	US$ in thousands	416	417	416	423	415	468	470	463	472	405	319	214	109	19	0	0	0	155	255	355
Interest coverage		194.84	180.49	198.75	200.39	201.46	49.99	32.39	13.24	-8.24	101.83	123.37	140.18	342.73	2,305.42	—	—	—	156.36	45.07	32.84

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $81,055K ÷ $416K
= 194.84

CommVault Systems Inc's interest coverage ratio has displayed significant fluctuations over the past few years. The ratio indicates the company's ability to cover its interest expenses with its operating income. In December 2021, the interest coverage ratio spiked to 2,305.42, indicating a strong ability to cover interest payments. However, in subsequent quarters, the ratio decreased but remained relatively healthy, with values ranging from 100s to 10s.

It is important to note a concerning trend in the March 2023 quarter when the interest coverage ratio dropped to -8.24, implying that the company's operating income was insufficient to cover its interest expenses during that period. However, the company quickly rebounded in the following quarters, showing improved performance.

Overall, CommVault Systems Inc's interest coverage ratio has demonstrated variability but generally indicates the company's ability to comfortably cover its interest obligations. Management should monitor the ratio closely to ensure financial stability and sustainable operations in the long term.