Korn Ferry (KFY)
Interest coverage
| Apr 30, 2025 | Jan 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 353,719 | 361,617 | 325,255 | 315,484 | 280,702 | 263,120 | 237,497 | 265,000 | 321,601 | 373,220 | 466,623 | 464,866 | 458,194 | 430,629 | 391,706 | 331,853 | 193,518 | 107,780 | 64,340 | 78,353 |
| Interest expense (ttm) | US$ in thousands | 20,363 | 19,718 | 19,203 | 20,173 | 20,968 | 22,058 | 22,490 | 22,992 | 25,864 | 26,561 | 28,212 | 27,479 | 25,293 | 26,412 | 26,681 | 27,810 | 29,278 | 28,684 | 28,305 | 25,021 |
| Interest coverage | 17.37 | 18.34 | 16.94 | 15.64 | 13.39 | 11.93 | 10.56 | 11.53 | 12.43 | 14.05 | 16.54 | 16.92 | 18.12 | 16.30 | 14.68 | 11.93 | 6.61 | 3.76 | 2.27 | 3.13 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $353,719K ÷ $20,363K
= 17.37
The analysis of Korn Ferry's interest coverage ratios over the specified periods demonstrates a trend of improving financial stability and capacity to meet interest obligations. Starting from a ratio of 3.13 as of July 31, 2020, there was a decline to 2.27 by October 31, 2020, signaling a temporary weakening in the company's ability to cover interest expenses during that quarter. Subsequently, the ratio rebounded, reaching 3.76 at the end of January 2021, indicating a return to a more comfortable coverage position.
From April 30, 2021 onward, there was a substantial and sustained increase in the interest coverage ratio. The ratio climbed sharply to 6.61 by April 30, 2021, and further strengthened to a peak of approximately 16.30 on January 31, 2022. This rising trend persisted through subsequent periods, reaching as high as 18.12 on April 30, 2022, and maintaining a high level through the latter half of 2022 with ratios around 16.54 to 16.92.
In 2023, the ratio experienced a modest decline but remained substantially above earlier levels, at around 11.53 on July 31, 2023, continuing to improve thereafter, reaching 16.94 by October 31, 2024, and projected to continue upward to over 18.34 by January 31, 2025.
Overall, the data indicates that Korn Ferry has experienced significant growth in its ability to cover interest expenses from mid-2021 onward, suggesting an improvement in profitability, cash flow, or both. The ratio's increase to high levels reflects a stronger financial position with enhanced capacity to service debt, contributing to a more resilient financial structure over the analyzed period.
Peer comparison
Apr 30, 2025