NetApp Inc (NTAP)
Interest coverage
| Apr 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,057,000 | 1,453,000 | 1,467,000 | 1,491,000 | 1,590,000 | 1,510,000 | 1,444,000 | 1,247,000 | 1,050,000 | 1,064,000 | 1,064,000 | 1,055,000 | 1,046,000 | 1,051,000 | 1,043,000 | 1,152,000 | 1,247,000 | 1,202,000 | 1,170,000 | 1,193,000 |
| Interest expense (ttm) | US$ in thousands | 64,000 | 59,000 | 63,000 | 65,000 | 66,000 | 65,000 | 64,000 | 63,000 | 62,000 | 63,000 | 64,000 | 64,000 | 64,000 | 65,000 | 66,000 | 68,000 | 70,000 | 71,000 | 72,000 | 73,000 |
| Interest coverage | 16.52 | 24.63 | 23.29 | 22.94 | 24.09 | 23.23 | 22.56 | 19.79 | 16.94 | 16.89 | 16.62 | 16.48 | 16.34 | 16.17 | 15.80 | 16.94 | 17.81 | 16.93 | 16.25 | 16.34 |
April 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,057,000K ÷ $64,000K
= 16.52
NetApp Inc's interest coverage ratio reflects the company's ability to meet its interest obligations with its operating income. The trend in NetApp's interest coverage ratio over the periods from July 2022 to April 2025 shows relative stability and improvement overall.
The interest coverage ratios range from 15.80 to 24.63 over the periods analyzed. A ratio above 1 indicates that NetApp is generating sufficient earnings to cover its interest expense. NetApp's interest coverage has generally remained above 15, which is considered healthy.
The ratio peaked at 24.63 in January 2025, indicating a strong ability to cover interest payments with earnings. This peak suggests that NetApp's profitability improved significantly at that time. However, the ratio decreased slightly in April 2025 to 16.52, which is still above the 15 threshold.
Overall, NetApp Inc's interest coverage ratio demonstrates the company's consistent ability to comfortably cover its interest expenses with its operating income, with a positive trend in recent periods. This indicates a healthy financial position and the ability to service its debt obligations effectively.
Peer comparison
Apr 30, 2025