NetApp Inc (NTAP)
Interest coverage
| Apr 26, 2024 | Apr 28, 2023 | Apr 29, 2022 | Apr 30, 2021 | Apr 24, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,327,000 | 1,133,000 | 1,168,000 | 1,036,000 | 999,000 |
| Interest expense | US$ in thousands | 64,000 | 67,000 | 73,000 | 74,000 | 55,000 |
| Interest coverage | 20.73 | 16.91 | 16.00 | 14.00 | 18.16 |
April 26, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,327,000K ÷ $64,000K
= 20.73
NetApp Inc's interest coverage has shown an improving trend over the past five years, indicating the company's ability to meet its interest obligations with its operating income. The interest coverage ratio has increased from 18.16 in April 2020 to 20.73 in April 2024, reaching its highest point in the period under review. This suggests that NetApp's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses, providing a comfortable cushion for debt holders. The consistent growth in interest coverage reflects a strong financial position and effective management of the company's debt obligations.
Peer comparison
Apr 26, 2024