NetApp Inc (NTAP)
Interest coverage
| Apr 26, 2024 | Jan 26, 2024 | Oct 27, 2023 | Jul 28, 2023 | Apr 28, 2023 | Jan 27, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | Apr 24, 2020 | Jan 24, 2020 | Oct 25, 2019 | Jul 26, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,327,000 | 1,261,000 | 1,055,000 | 1,047,000 | 1,133,000 | 1,093,000 | 1,225,000 | 1,201,000 | 1,168,000 | 1,333,000 | 1,274,000 | 1,169,000 | 1,036,000 | 845,000 | 869,000 | 987,000 | 999,000 | 1,133,000 | 1,178,000 | 1,174,000 |
| Interest expense (ttm) | US$ in thousands | 64,000 | 64,000 | 63,000 | 65,000 | 67,000 | 69,000 | 72,000 | 73,000 | 73,000 | 74,000 | 74,000 | 74,000 | 74,000 | 69,000 | 64,000 | 58,000 | 55,000 | 55,000 | 57,000 | 59,000 |
| Interest coverage | 20.73 | 19.70 | 16.75 | 16.11 | 16.91 | 15.84 | 17.01 | 16.45 | 16.00 | 18.01 | 17.22 | 15.80 | 14.00 | 12.25 | 13.58 | 17.02 | 18.16 | 20.60 | 20.67 | 19.90 |
April 26, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,327,000K ÷ $64,000K
= 20.73
NetApp Inc's interest coverage ratio has shown some fluctuations over the past several quarters. Interest coverage indicates the company's ability to meet its interest obligations from its operating income.
Looking at the data, we can observe that the interest coverage ratio has ranged from a low of 12.25 to a high of 20.73 during the period covered. Generally, a higher interest coverage ratio is considered favorable as it suggests that the company has more than enough operating income to cover its interest expenses.
In the most recent period, as of April 26, 2024, NetApp Inc's interest coverage ratio stood at 20.73, which indicates that the company generated over 20 times the operating income needed to cover its interest expenses. This is a positive sign for investors and creditors as it demonstrates the company's ability to comfortably meet its interest payment obligations.
Overall, while there have been fluctuations in NetApp Inc's interest coverage ratio over time, the recent trend indicates a strong ability to cover interest expenses, which is essential for maintaining financial health and credibility in the eyes of stakeholders.
Peer comparison
Apr 26, 2024