Korn Ferry (KFY)
Interest coverage
| 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 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 212,929 | 202,032 | 164,678 | 261,509 | 316,340 | 382,512 | 496,289 | 480,418 | 470,074 | 417,573 | 356,438 | 300,834 | 155,784 | 91,759 | 58,199 | 71,896 | 176,025 | 216,073 | 247,161 | 256,279 |
| Interest expense (ttm) | US$ in thousands | 212 | 210 | 204 | 196 | 190 | 161 | 133 | 108 | 84 | 88 | 98 | 107 | 114 | 122 | 131 | 140 | 149 | 4,286 | 8,530 | 12,828 |
| Interest coverage | 1,004.38 | 962.06 | 807.25 | 1,334.23 | 1,664.95 | 2,375.85 | 3,731.50 | 4,448.31 | 5,596.12 | 4,745.15 | 3,637.12 | 2,811.53 | 1,366.53 | 752.12 | 444.27 | 513.54 | 1,181.38 | 50.41 | 28.98 | 19.98 |
April 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $212,929K ÷ $212K
= 1,004.38
The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. A higher interest coverage ratio indicates a company's stronger ability to cover its interest expenses.
Analyzing the trend in Korn Ferry's interest coverage ratio over the past few quarters, we observe significant fluctuations. The interest coverage ratio has shown a declining trend, starting at a high of 5,596.12 in April 2022 and reaching a low of 19.98 in October 2019. This indicates a fluctuating ability to cover interest expenses over this period.
The interest coverage ratio peaked in October 2022 at 3,731.50 before declining in subsequent quarters. The most recent data point for April 2024 shows an interest coverage ratio of 1,004.38, which is still above 1, indicating that the company's operating income is sufficient to cover its interest expenses.
Overall, the analysis suggests that Korn Ferry has experienced fluctuations in its ability to cover interest expenses over the past few quarters. It would be crucial for stakeholders to monitor this ratio closely to assess the company's financial health and its ability to meet debt obligations in the future.
Peer comparison
Apr 30, 2024