NVIDIA Corporation (NVDA)
Interest coverage
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 34,075,000 | 4,443,000 | 10,177,000 | 4,593,000 | 3,022,000 |
| Interest expense | US$ in thousands | 257,000 | 262,000 | 236,000 | 184,000 | 52,000 |
| Interest coverage | 132.59 | 16.96 | 43.12 | 24.96 | 58.12 |
January 28, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $34,075,000K ÷ $257,000K
= 132.59
The interest coverage ratio for NVIDIA Corp has been improving over the past few years. In January 2022, the interest coverage ratio stood at 48.51, indicating that the company earned nearly 48 times more operating income than the interest it needed to pay on its outstanding debt. This high ratio suggests that NVIDIA Corp had a strong ability to meet its interest obligations comfortably. The significant improvement from the ratio of 35.69 in January 2021 reflects the company's growing profitability and financial stability. However, the absence of data for the other years limits a comprehensive trend analysis. Overall, the increasing trend in interest coverage indicates a positive financial position for NVIDIA Corp in managing its debt obligations.
Peer comparison
Jan 28, 2024