NetApp Inc (NTAP)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Apr 26, 2024 | Jan 31, 2024 | Jan 26, 2024 | Oct 31, 2023 | Oct 27, 2023 | Jul 31, 2023 | Jul 28, 2023 | Apr 30, 2023 | Apr 28, 2023 | Jan 31, 2023 | Jan 27, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,453,000 | 1,467,000 | 1,491,000 | 1,590,000 | 1,510,000 | 1,444,000 | 1,270,000 | 1,073,000 | 1,066,000 | 1,066,000 | 1,193,000 | 1,184,000 | 1,157,000 | 1,149,000 | 1,052,000 | 1,147,000 | 1,169,000 | 1,137,000 | 1,215,000 | 1,252,000 |
| Interest expense (ttm) | US$ in thousands | 59,000 | 63,000 | 65,000 | 66,000 | 65,000 | 64,000 | 63,000 | 62,000 | 70,000 | 71,000 | 71,000 | 71,000 | 65,000 | 66,000 | 68,000 | 70,000 | 71,000 | 72,000 | 73,000 | 74,000 |
| Interest coverage | 24.63 | 23.29 | 22.94 | 24.09 | 23.23 | 22.56 | 20.16 | 17.31 | 15.23 | 15.01 | 16.80 | 16.68 | 17.80 | 17.41 | 15.47 | 16.39 | 16.46 | 15.79 | 16.64 | 16.92 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,453,000K ÷ $59,000K
= 24.63
NetApp Inc's interest coverage ratio has shown a generally positive trend over the reported period from April 30, 2022, to January 31, 2025. The interest coverage ratio reflects the company's ability to meet its interest obligations on its outstanding debt.
The interest coverage ratio ranged from a low of 15.01 as of July 31, 2023, to a high of 24.63 as of January 31, 2025, indicating that the company's earnings were consistently sufficient to cover its interest expenses comfortably during this period.
The increasing trend in the interest coverage ratio signifies the company's improving ability to pay interest on its debt obligations. Higher interest coverage ratios are generally seen as favorable, indicating a lower risk of default on debt payments.
Overall, the consistent and favorable interest coverage ratios suggest that NetApp Inc has been effectively managing its interest expenses and generating adequate earnings to service its debt obligations during the reported period.
Peer comparison
Jan 31, 2025