Qualcomm Incorporated (QCOM)
Interest coverage
| Sep 30, 2024 | Jun 23, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,066,000 | 9,739,000 | 9,268,000 | 8,623,000 | 8,030,000 | 10,141,000 | 12,453,000 | 13,937,000 | 15,438,000 | 15,296,000 | 13,382,000 | 12,092,000 | 10,833,000 | 10,882,000 | 9,498,000 | 7,972,000 | 6,322,000 | 3,614,000 | 8,264,000 | 8,488,000 |
| Interest expense (ttm) | US$ in thousands | 698,000 | 691,000 | 695,000 | 702,000 | 694,000 | 666,000 | 564,000 | 522,000 | 491,000 | 484,000 | 552,000 | 556,000 | 558,000 | 586,000 | 591,000 | 596,000 | 603,000 | 587,000 | 604,000 | 620,000 |
| Interest coverage | 15.85 | 14.09 | 13.34 | 12.28 | 11.57 | 15.23 | 22.08 | 26.70 | 31.44 | 31.60 | 24.24 | 21.75 | 19.41 | 18.57 | 16.07 | 13.38 | 10.48 | 6.16 | 13.68 | 13.69 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $11,066,000K ÷ $698,000K
= 15.85
Qualcomm Incorporated's interest coverage ratio has shown a generally positive trend over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In the most recent quarter, as of September 30, 2024, Qualcomm's interest coverage ratio was 15.85, indicating that the company generated 15.85 times more operating income than needed to cover its interest expenses. This suggests a strong ability to meet its interest obligations.
Looking at the trend over the past few quarters, there has been a consistent improvement in the interest coverage ratio, with occasional fluctuations. The ratio has generally been above 10, which is considered a healthy level indicating a comfortable margin of safety in meeting interest payments.
Overall, Qualcomm's interest coverage ratio indicates a strong financial position with ample earnings to cover its interest expenses. Investors and creditors evaluating the company's creditworthiness would likely view this trend positively.
Peer comparison
Sep 30, 2024