NetApp Inc (NTAP)
Interest coverage
| Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,327,000 | 1,327,000 | 1,133,000 | 1,133,000 | 1,115,000 |
| Interest expense | US$ in thousands | 64,000 | 64,000 | 234,000 | 67,000 | 73,000 |
| Interest coverage | 20.73 | 20.73 | 4.84 | 16.91 | 15.27 |
April 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,327,000K ÷ $64,000K
= 20.73
NetApp Inc's interest coverage ratio provides insight into the company's ability to meet its interest payment obligations. The trend in the interest coverage ratio shows a generally positive performance from April 2022 to April 2024. The ratio improved from 15.27 in April 2022 to 20.73 in both April 26, 2024, and April 30, 2024, indicating a stronger ability to cover interest expenses with operating income.
However, there was a significant decrease in the interest coverage ratio in April 2023, dropping to 4.84. This lower ratio may raise concerns about the company's ability to meet its interest obligations from operating income that year.
Overall, the interest coverage ratios suggest that NetApp Inc has generally been able to comfortably cover its interest payments with operating income, with some fluctuations in performance over the period analyzed. Nevertheless, it is essential for investors and stakeholders to monitor these ratios continuously to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Apr 30, 2024