NVIDIA Corporation (NVDA)
Interest coverage
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 34,076,000 | 21,259,000 | 11,351,000 | 4,845,000 | 4,443,000 | 6,017,000 | 8,039,000 | 9,953,000 | 10,177,000 | 8,774,000 | 7,475,000 | 5,684,000 | 4,593,000 | 4,098,000 | 3,669,000 | 3,625,000 | 3,021,000 | 2,332,000 | 2,456,000 | 3,031,000 |
| Interest expense (ttm) | US$ in thousands | 257,000 | 258,000 | 260,000 | 260,000 | 262,000 | 259,000 | 256,000 | 251,000 | 236,000 | 228,000 | 219,000 | 213,000 | 185,000 | 145,000 | 105,000 | 64,000 | 52,000 | 53,000 | 55,000 | 56,000 |
| Interest coverage | 132.59 | 82.40 | 43.66 | 18.63 | 16.96 | 23.23 | 31.40 | 39.65 | 43.12 | 38.48 | 34.13 | 26.69 | 24.83 | 28.26 | 34.94 | 56.64 | 58.10 | 44.00 | 44.65 | 54.12 |
January 28, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $34,076,000K ÷ $257,000K
= 132.59
The interest coverage ratio for NVIDIA Corp for the first four quarters of 2023 was 53.84, 53.49, 75.16, and data is unavailable for Q4 2024, Q3 2024, Q2 2024, and Q1 2024.
The interest coverage ratio indicates the company's ability to meet its interest obligations on outstanding debt. A higher ratio is generally favorable as it signifies that the company generates enough operating income to cover its interest expenses.
NVIDIA's interest coverage ratio has been consistently above 1, indicating that the company is capable of paying its interest expenses with its earnings. The significant increase in the interest coverage ratio from Q3 2023 to Q2 2023 is a positive indication of the company's improving ability to cover its interest obligations.
However, the lack of data for the more recent quarters prevents us from assessing the trend or current status of NVIDIA's interest coverage. It is essential for investors and stakeholders to monitor the interest coverage ratio over time to assess the company's financial health and ability to service its debt.
Peer comparison
Jan 28, 2024