NetApp Inc (NTAP)
Interest coverage
| Apr 30, 2025 | Apr 30, 2024 | Apr 26, 2024 | Apr 30, 2023 | Apr 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 1,327,000 | 1,327,000 | 1,133,000 | 1,133,000 |
| Interest expense | US$ in thousands | 64,000 | 64,000 | 64,000 | 234,000 | 67,000 |
| Interest coverage | 0.00 | 20.73 | 20.73 | 4.84 | 16.91 |
April 30, 2025 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $64,000K
= 0.00
NetApp Inc's interest coverage ratio reflects its ability to meet interest obligations with its earnings.
- As of April 28, 2023, the interest coverage ratio stood at 16.91, indicating the company's earnings were more than sufficient to cover its interest expenses.
- However, there was a notable decline in the interest coverage ratio by April 30, 2023, to 4.84, suggesting a decrease in the company's ability to cover interest payments with its earnings.
- The ratio improved significantly by April 26, 2024, to 20.73, indicating a strong recovery in the company's ability to meet interest obligations.
- This strong interest coverage ratio was maintained through April 30, 2024, at 20.73, reflecting continued stability in the company's earnings relative to its interest expenses.
- Surprisingly, by April 30, 2025, the interest coverage ratio dropped to 0.00. This implies that NetApp Inc's earnings were not sufficient to cover its interest expenses, which may raise concerns about the company's financial health.
Overall, fluctuations in NetApp Inc's interest coverage ratio over the years indicate varying degrees of financial strength and ability to manage interest expenses. Stakeholders may monitor this ratio closely to assess the company's financial risk and sustainability.
Peer comparison
Apr 30, 2025