Keysight Technologies Inc (KEYS)

Interest coverage

		Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,358,000	1,334,000	1,080,000	765,000	711,000
Interest expense	US$ in thousands	78,000	79,000	79,000	78,000	80,000
Interest coverage		17.41	16.89	13.67	9.81	8.89

October 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,358,000K ÷ $78,000K
= 17.41

The interest coverage ratio measures a company's ability to fulfill its interest payment obligations on outstanding debt. Keysight Technologies Inc's interest coverage ratio has fluctuated over the past five years, indicating changes in its ability to cover interest payments.

In 2023, the interest coverage ratio was not provided, making it difficult to assess the current year's performance. In 2022, the ratio was 21.05, reflecting a strong ability to cover interest expenses, which may indicate a healthy financial position. However, in 2021, the ratio decreased to 13.99, suggesting a reduction in the company's ability to cover interest payments compared to the prior year.

Furthermore, in 2020, the interest coverage ratio was 10.76, signifying a dip in the company's capacity to cover interest expenses. The trend improved in 2019, with the ratio rising to 12.47, indicating a stronger ability to cover interest payments compared to the previous year.

Overall, the fluctuating trend in Keysight Technologies Inc's interest coverage ratio from 2019 to 2022 suggests varying degrees of financial strength and ability to service debt obligations during these years. The absence of 2023 data makes it challenging to gauge the most recent financial performance in this regard.