Photronics Inc (PLAB)

Interest coverage

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	221,518	253,050	211,866	94,554	63,928
Interest expense	US$ in thousands	—	426	522	610	100
Interest coverage		—	594.01	405.87	155.01	639.28

October 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $221,518K ÷ $—K
= —

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses. Photronics Inc's interest coverage ratio has fluctuated over the years, with a significant increase in 2020 to 639.28 before decreasing in 2021 to 155.01, and then gradually increasing again in 2022 to 405.87 and further to 594.01 in 2023. However, there is missing data for 2024. Overall, the company has demonstrated strong ability to cover its interest expenses in recent years, with the ratio consistently above 100, which is considered a healthy level. It is important for investors and creditors to monitor this ratio to assess the company's financial health and its ability to meet its debt obligations.