Gen Digital Inc. (GEN)
Interest coverage
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 1,144,000 | 1,205,000 | 1,168,000 | 1,016,000 |
| Interest expense | US$ in thousands | 578,000 | 669,000 | 401,000 | 126,000 | 144,000 |
| Interest coverage | 0.00 | 1.71 | 3.00 | 9.27 | 7.06 |
March 31, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $578,000K
= 0.00
Interest coverage is a crucial financial metric that reflects a company's ability to meet its interest obligations on outstanding debt. Gen Digital Inc.'s interest coverage has shown fluctuations over the years.
As of March 31, 2021, Gen Digital Inc.'s interest coverage ratio was 7.06, indicating that the company generated enough operating income to cover its interest expenses approximately 7 times. This demonstrates a healthy ability to meet interest payments.
In the following year, as of March 31, 2022, the interest coverage ratio improved to 9.27, indicating a further strengthening of the company's ability to cover interest expenses with its operating income.
However, by March 31, 2023, the interest coverage ratio decreased to 3.00, signaling a potential decline in the company's ability to cover interest payments.
The trend worsened in the subsequent years, with the interest coverage ratios falling significantly to 1.71 as of March 31, 2024, and eventually to 0.00 as of March 31, 2025. These low ratios raise concerns about Gen Digital Inc.'s ability to cover its interest expenses with its operating income, indicating potential financial distress.
Overall, the fluctuating trend in Gen Digital Inc.'s interest coverage ratios highlights the importance of closely monitoring the company's financial performance and debt management practices to ensure sustainable operations and financial health.
Peer comparison
Mar 31, 2025