Korn Ferry (KFY)
Interest coverage
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 319,535 | 243,610 | 321,601 | 458,194 | 192,978 |
| Interest expense | US$ in thousands | 20,363 | 20,968 | 25,864 | 25,293 | 29,278 |
| Interest coverage | 15.69 | 11.62 | 12.43 | 18.12 | 6.59 |
April 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $319,535K ÷ $20,363K
= 15.69
The interest coverage ratios for Korn Ferry over the observed period demonstrate a generally strong capacity to meet interest obligations through earnings before interest and taxes (EBIT). As of April 30, 2021, the ratio was 6.59, indicating the company earned approximately 6.59 times its interest expenses, which reflects solid coverage. By April 30, 2022, this ratio increased markedly to 18.12, suggesting a significant strengthening of the company's ability to cover interest, possibly due to improved earnings or reduced interest expenses.
Subsequently, the ratio slightly declined to 12.43 as of April 30, 2023, but remained well above critical thresholds, illustrating continued strong coverage albeit with some reduction from the previous peak. The figures for April 30, 2024, and April 30, 2025, are 11.62 and 15.69, respectively. These values indicate a stable and healthy financial position, with the company's ability to generate enough EBIT to comfortably cover interest expenses, though the ratios fluctuate within a range that suggests some variability in earnings or interest expense levels.
Overall, the data portrays Korn Ferry as maintaining a robust interest coverage ratio across the examined period, with the ratios consistently above the generally accepted minimum threshold of 3 to 4, thereby reflecting a prudent level of financial leverage and risk management. The fluctuations observed may relate to changes in operating income, interest structures, or accounting adjustments over time, but they do not signal any immediate concern regarding the company’s ability to meet its interest obligations.
Peer comparison
Apr 30, 2025