Dell Technologies Inc (DELL)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Aug 2, 2024 | Jul 31, 2024 | May 3, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,369,000 | 4,264,000 | 4,625,000 | 4,946,000 | 5,231,000 | 5,889,000 | 6,304,000 | 5,714,000 | 5,582,000 | 5,144,000 | 4,834,000 | 5,079,000 | 4,860,000 | 5,507,000 | 5,120,000 | 4,769,000 | 4,397,000 | 4,094,000 | 4,845,000 | 3,083,000 |
| Interest expense (ttm) | US$ in thousands | 1,707,000 | 1,863,000 | 1,476,000 | 1,462,000 | 1,448,000 | 1,476,000 | 1,489,000 | 1,468,000 | 1,518,000 | 1,552,000 | 1,585,000 | 1,620,000 | 1,584,000 | 1,480,000 | 1,347,000 | 1,290,000 | 1,201,000 | 1,177,000 | 1,170,000 | 907,000 |
| Interest coverage | 1.97 | 2.29 | 3.13 | 3.38 | 3.61 | 3.99 | 4.23 | 3.89 | 3.68 | 3.31 | 3.05 | 3.14 | 3.07 | 3.72 | 3.80 | 3.70 | 3.66 | 3.48 | 4.14 | 3.40 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,369,000K ÷ $1,707,000K
= 1.97
The interest coverage ratio is a measure of a company's ability to meet its interest payment obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Based on the data provided for Dell Technologies Inc, the company's interest coverage ratio has varied over the specified periods. The interest coverage ratio ranges from a low of 1.97 to a high of 4.23.
The trend in Dell's interest coverage ratio shows some fluctuations with some periods having stronger interest coverage than others. The ratio has generally been above 3, indicating that the company has generally been able to cover its interest expenses comfortably. However, there are some periods where the interest coverage ratio falls below 3, which may raise concerns about Dell's ability to cover its interest obligations.
Overall, Dell's interest coverage ratio provides insight into the company's ability to service its debt and manage its financial obligations. It is essential for investors and stakeholders to monitor Dell's interest coverage ratio over time to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Jan 31, 2025