Korn Ferry (KFY)

Based on the interest coverage ratios provided for Korn Ferry over the last five years, we observe significant fluctuations in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In 2024, the interest coverage ratio stands at an exceptionally high level of 1,004.38, indicating a substantial cushion between the company's EBIT and its interest expenses. This might suggest that Korn Ferry has a strong capacity to service its debt obligations comfortably.

However, in 2023 and 2022, the interest coverage ratios were 1,664.95 and 5,596.12, respectively, both reflecting extremely high levels of coverage. This could indicate that the company has experienced significant improvements in its profitability and EBIT generation during these periods, enabling it to easily meet its interest payment obligations.

In contrast, the interest coverage ratios in 2021 and 2020 were 1,366.53 and 1,181.38, displaying lower levels of coverage compared to the previous years. While these ratios still indicate that Korn Ferry was able to cover its interest expenses comfortably, the downward trend suggests a potential decrease in earnings relative to its interest payments during these years.

Overall, the analysis of Korn Ferry's interest coverage ratios highlights the company's varying ability to meet its interest obligations over the past five years. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and sustainability.

Peer comparison

Apr 30, 2024