Intuit Inc (INTU)
Interest coverage
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,630,000 | 3,798,000 | 3,471,000 | 3,372,000 | 3,141,000 | 3,049,000 | 2,666,000 | 2,452,000 | 2,571,000 | 3,048,000 | 2,567,000 | 2,486,000 | 2,500,000 | 2,581,000 | 2,080,000 | 2,375,000 | 2,176,000 | 1,540,000 | 1,911,000 | 1,874,000 |
| Interest expense (ttm) | US$ in thousands | 242,000 | 250,000 | 256,000 | 264,000 | 248,000 | 212,000 | 167,000 | 123,000 | 81,000 | 56,000 | 42,000 | 28,000 | 29,000 | 29,000 | 24,000 | 20,000 | 14,000 | 10,000 | 12,000 | 13,000 |
| Interest coverage | 15.00 | 15.19 | 13.56 | 12.77 | 12.67 | 14.38 | 15.96 | 19.93 | 31.74 | 54.43 | 61.12 | 88.79 | 86.21 | 89.00 | 86.67 | 118.75 | 155.43 | 154.00 | 159.25 | 144.15 |
July 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,630,000K ÷ $242,000K
= 15.00
Interest coverage measures a company's ability to cover its interest expenses with its operating income. Looking at the trend of Intuit Inc's interest coverage ratio over the past few quarters, we can see that it has been consistently strong and well above 1, indicating a comfortable cushion for meeting interest obligations.
The interest coverage ratio for Intuit Inc has been generally increasing over the historical period presented. This indicates that the company's operating income has been increasing at a faster rate than its interest expenses, which is a positive sign for creditors and investors. The trend suggests that Intuit Inc has a healthy ability to meet its interest payments, with a significant margin of safety.
Furthermore, Intuit Inc's interest coverage ratio has exhibited significant volatility, with fluctuations from as low as 12.67 to as high as 159.25. While some fluctuations are expected due to changes in operating performance and interest costs, investors may want to closely monitor the trend to ensure the company maintains a comfortable level of interest coverage in the long term.
Overall, based on the historical data provided, Intuit Inc's interest coverage ratio appears strong and improving, indicating a sound financial position with a solid ability to service its debt obligations.
Peer comparison
Jul 31, 2024