Dell Technologies Inc (DELL)
Interest coverage
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,453,000 | 5,184,000 | 5,404,000 | 5,059,000 | 4,236,000 | 4,101,000 | 4,467,000 | 3,419,000 | 7,802,000 | 8,207,000 | 8,086,000 | 9,465,000 | 6,271,000 | 5,994,000 | 5,403,000 | 9,087,000 | 7,928,000 | 7,381,000 | 7,162,000 | 2,160,000 |
| Interest expense (ttm) | US$ in thousands | 1,474,000 | 1,439,000 | 1,501,000 | 1,515,000 | 1,416,000 | 1,362,000 | 1,222,000 | 1,122,000 | 1,256,000 | 1,374,000 | 1,542,000 | 1,452,000 | 1,612,000 | 1,813,000 | 2,052,000 | 2,144,000 | 2,232,000 | 2,245,000 | 2,266,000 | 2,583,000 |
| Interest coverage | 3.70 | 3.60 | 3.60 | 3.34 | 2.99 | 3.01 | 3.66 | 3.05 | 6.21 | 5.97 | 5.24 | 6.52 | 3.89 | 3.31 | 2.63 | 4.24 | 3.55 | 3.29 | 3.16 | 0.84 |
August 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,453,000K ÷ $1,474,000K
= 3.70
The interest coverage ratio of Dell Technologies Inc has shown some variability over the past few quarters. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Looking at the data provided, Dell's interest coverage ratio has fluctuated between 0.84 and 6.52 over the past two years. The ratio was at its lowest in November 2019 at 0.84, indicating a potential strain on the company's ability to cover interest expenses with its earnings. However, the ratio has shown improvement since then, reaching a peak of 6.52 in January 2022.
Overall, the interest coverage ratio for Dell Technologies Inc has generally been above 3, which suggests that the company has been able to comfortably cover its interest payments with its operating earnings. However, investors and analysts may want to monitor the ratio closely to ensure that Dell's financial health remains stable, especially during periods of economic uncertainty or changes in interest rates.
Peer comparison
Aug 2, 2024