Keysight Technologies Inc (KEYS)

Interest coverage

		Oct 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	861,000	948,000	1,108,000	1,285,000	1,358,000	1,420,000	1,412,000	1,385,000	1,334,000	1,304,000	1,231,000	1,139,000	1,080,000	1,009,000	907,000	774,000	765,000	695,000	710,000	793,000
Interest expense (ttm)	US$ in thousands	61,000	81,000	79,000	79,000	78,000	78,000	79,000	78,000	79,000	79,000	79,000	79,000	79,000	78,000	78,000	79,000	78,000	79,000	79,000	79,000
Interest coverage		14.11	11.70	14.03	16.27	17.41	18.21	17.87	17.76	16.89	16.51	15.58	14.42	13.67	12.94	11.63	9.80	9.81	8.80	8.99	10.04

October 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $861,000K ÷ $61,000K
= 14.11

Keysight Technologies Inc has shown consistently strong interest coverage ratios over the past few years, indicating its ability to comfortably meet its interest obligations. The interest coverage ratio has generally been above 10, with a peak of 18.21 in July 2023.

This trend suggests that the company generates ample earnings to cover its interest expenses, providing a cushion against potential financial risks. The stability and upward trend in the interest coverage ratio reflect a healthy financial position and efficient management of debt obligations by Keysight Technologies Inc.