Gen Digital Inc. (GEN)

Interest coverage

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jul 5, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,122,000	1,079,000	1,112,000	1,328,000	1,227,000	999,000	933,000	979,000	1,005,000	1,142,000	1,120,000	1,063,000	896,000	674,000	456,000	335,000	355,000	383,000	383,000	317,000
Interest expense (ttm)	US$ in thousands	669,000	676,000	665,000	540,000	401,000	264,000	142,000	125,000	126,000	130,000	130,000	136,000	144,000	159,000	178,000	187,000	196,000	197,000	199,000	205,000
Interest coverage		1.68	1.60	1.67	2.46	3.06	3.78	6.57	7.83	7.98	8.78	8.62	7.82	6.22	4.24	2.56	1.79	1.81	1.94	1.92	1.55

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,122,000K ÷ $669,000K
= 1.68

Gen Digital Inc.'s interest coverage ratio has exhibited fluctuations over the reporting periods, indicating varying levels of financial risk and ability to cover interest expenses. The interest coverage ratio, which represents the company's ability to meet interest payments on outstanding debt, shows a declining trend from Jun 30, 2021, to Jun 30, 2023, reaching its lowest point of 1.67. This decline may raise concerns about the company's ability to meet its interest obligations comfortably.

However, from Jun 30, 2023, to Mar 31, 2024, there is a noticeable improvement in the interest coverage ratio, reaching 1.68. This improvement suggests that the company's ability to cover interest expenses has slightly strengthened. Despite this improvement, the ratio still remains relatively low, indicating that Gen Digital Inc. may be operating with a relatively higher level of financial risk compared to previous periods.

It is essential for investors and stakeholders to closely monitor Gen Digital Inc.'s interest coverage ratio in future periods to assess the company's ability to manage its debt obligations effectively and mitigate financial risks.