Qualcomm Incorporated (QCOM)

Interest coverage

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	11,065,000	8,030,000	15,438,000	10,833,000	6,321,000
Interest expense	US$ in thousands	697,000	694,000	490,000	559,000	602,000
Interest coverage		15.88	11.57	31.51	19.38	10.50

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $11,065,000K ÷ $697,000K
= 15.88

Qualcomm Incorporated's interest coverage ratio has shown some fluctuations over the past five years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

In 2024, the interest coverage ratio stands at 15.88, showing an increase compared to the previous year. This level indicates that Qualcomm is generating sufficient earnings to cover its interest obligations comfortably.

In 2023, the interest coverage ratio was 11.57, which was lower than in the following year. This suggests that Qualcomm's ability to cover interest expenses with operating income was slightly weaker in this period.

The interest coverage ratio was notably high in 2022 at 31.51, indicating a very strong ability to meet interest payments. This could be a result of increased earnings relative to interest expenses.

In 2021, the interest coverage ratio was 19.38, reflecting a solid ability to cover interest expenses. This level was lower than the peak in 2022 but still indicative of a healthy financial position.

In 2020, the interest coverage ratio was 10.50, showing a lower ability to cover interest expenses compared to the subsequent years. However, it is important to note that the ratio was still above 1, indicating that Qualcomm was able to meet its interest obligations.

Overall, Qualcomm's interest coverage ratio has generally been at a healthy level over the past five years, indicating the company's ability to comfortably pay its interest expenses with its operating income.