F5 Networks Inc (FFIV)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	658,591	472,568	403,792	394,025	392,267
Interest expense	US$ in thousands	—	—	18,399	7,088	11,470
Interest coverage		—	—	21.95	55.59	34.20

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $658,591K ÷ $—K
= —

Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

In the case of F5 Networks Inc, the interest coverage ratio has shown a declining trend over the past five years. In 2020, the interest coverage ratio was 34.20, indicating that the company's operating income was 34.20 times greater than its interest expenses. This ratio increased significantly to 55.59 in 2021 and further to 21.95 in 2022. However, the interest coverage ratio is missing for the most recent years, 2023 and 2024, suggesting that the data might not be available or disclosed.

The decreasing trend in interest coverage from 2021 to 2022 could raise concerns about the company's ability to cover its interest expenses comfortably. Without the data for 2023 and 2024, it is challenging to assess the current financial health of F5 Networks Inc in terms of its ability to meet its interest obligations. Further information would be needed to evaluate whether this declining trend in interest coverage is indicative of potential financial risks for the company.