DXC Technology Co (DXC)
Interest coverage
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 412,000 | -687,000 | 1,327,000 | 1,012,000 | -4,856,000 |
| Interest expense | US$ in thousands | 298,000 | 200,000 | 204,000 | 361,000 | 383,000 |
| Interest coverage | 1.38 | -3.44 | 6.50 | 2.80 | -12.68 |
March 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $412,000K ÷ $298,000K
= 1.38
The interest coverage of DXC Technology Co has exhibited significant fluctuations over the past five years. In 2024, the interest coverage ratio improved to 1.38, indicating the company's ability to cover its interest expenses with operating income. This is a positive sign compared to the negative ratio of -3.44 in 2023, showcasing an enhancement in the company's ability to meet its interest obligations. The peak performance in the past five years was noted in 2022 with an interest coverage ratio of 6.50, signifying a strong ability to cover interest expenses. However, this ratio decreased in 2023 and 2021 but remained positive. The lowest interest coverage ratio was observed in 2020 at -12.68, indicating that the company's operating income was insufficient to cover its interest expenses during that period. Overall, the trend in interest coverage ratios for DXC Technology Co has shown variability, with efforts towards improvement in recent years.
Peer comparison
Mar 31, 2024