DXC Technology Co (DXC)
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 | 896,000 | 266,000 | 359,000 | -1,862,000 | -1,858,000 | -2,725,000 | -2,857,000 | -700,000 | -685,000 | 1,257,000 | 1,303,000 | 1,018,000 | 1,345,000 | -213,000 | 1,643,000 | 1,624,000 | 1,019,000 | -1,732,000 | -3,568,000 | -5,257,000 |
| Interest expense (ttm) | US$ in thousands | 265,000 | 283,000 | 295,000 | 304,000 | 298,000 | 285,000 | 263,000 | 229,000 | 200,000 | 180,000 | 162,000 | 179,000 | 204,000 | 238,000 | 282,000 | 317,000 | 361,000 | 379,000 | 390,000 | 398,000 |
| Interest coverage | 3.38 | 0.94 | 1.22 | -6.12 | -6.23 | -9.56 | -10.86 | -3.06 | -3.42 | 6.98 | 8.04 | 5.69 | 6.59 | -0.89 | 5.83 | 5.12 | 2.82 | -4.57 | -9.15 | -13.21 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $896,000K ÷ $265,000K
= 3.38
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Based on the data provided for DXC Technology Co, we observe fluctuations in the interest coverage ratio over time. The trend shows significant variability, ranging from negative figures to positive values.
For the period between June 30, 2020, and December 31, 2021, the interest coverage ratio remained negative, indicating that the company may have been facing challenges in meeting its interest payments with its operating income.
Starting from March 31, 2022, there is an improvement in the interest coverage ratio, reaching positive values. This suggests an enhancement in the company's ability to cover its interest expenses with its operating earnings.
Between September 30, 2022, and December 31, 2024, the interest coverage ratio fluctuates within a range of positive values, indicating a varying ability to meet interest obligations during these periods.
The data for March 31, 2025, shows a further increase in the interest coverage ratio, indicating a strengthening ability to cover interest expenses with operating income.
In conclusion, the interest coverage ratio for DXC Technology Co has shown fluctuations over the period under review, with a mix of negative and positive values. The recent positive trend in the interest coverage ratio reflects an improved capacity to meet interest payments using operating earnings. However, the company should continue monitoring and managing its debt levels and interest expenses to ensure financial stability.
Peer comparison
Mar 31, 2025