Dell Technologies Inc (DELL)
Interest coverage
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,404,000 | 4,467,000 | 8,086,000 | 5,403,000 | 6,378,000 |
| Interest expense | US$ in thousands | 1,501,000 | 1,222,000 | 1,542,000 | 2,052,000 | 2,334,000 |
| Interest coverage | 3.60 | 3.66 | 5.24 | 2.63 | 2.73 |
February 2, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,404,000K ÷ $1,501,000K
= 3.60
The interest coverage ratio for Dell Technologies Inc has shown some fluctuations over the past five years. The ratio stood at 3.60 in February 2024, a slight decrease from the previous year's 3.66, indicating that the company generated $3.60 in operating income for every $1 of interest expense.
In January 2022, the interest coverage ratio increased significantly to 5.24, reflecting a stronger ability to cover interest payments compared to the previous years. However, there was a decrease in the ratio to 2.63 in January 2021, indicating a potential strain on the company's ability to cover interest expenses.
The interest coverage ratio improved slightly to 2.73 in January 2020, but it remained relatively low compared to the peak in 2022. Overall, Dell's interest coverage ratio has fluctuated over the years, suggesting varying levels of financial health and ability to meet its interest obligations.
Peer comparison
Feb 2, 2024