Keysight Technologies Inc (KEYS)
Interest coverage
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 949,000 | 1,358,000 | 1,334,000 | 1,080,000 | 765,000 |
| Interest expense | US$ in thousands | 84,000 | 78,000 | 79,000 | 79,000 | 78,000 |
| Interest coverage | 11.30 | 17.41 | 16.89 | 13.67 | 9.81 |
October 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $949,000K ÷ $84,000K
= 11.30
Keysight Technologies Inc's interest coverage ratio has shown a generally healthy trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The ratio peaked in October 2023 at 17.41, signifying that the company's operating income was more than sufficient to cover its interest expenses by over 17 times. This suggests a strong financial position and a lower risk of default.
Although the interest coverage ratio slightly decreased in the following years, dropping to 11.30 in October 2024, it still remains at a level that indicates the company has a solid ability to cover its interest payments from its operating earnings. The downward trend in the ratio may warrant further analysis to understand if there are any underlying reasons or if it is within acceptable limits.
Overall, with consistently high interest coverage ratios, Keysight Technologies Inc appears to have a sound financial standing with the ability to comfortably manage its interest expenses and potentially pursue further growth opportunities.
Peer comparison
Oct 31, 2024