Qualcomm Incorporated (QCOM)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 8,108,000 | 6,751,000 | 2,236,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 628,000 | 685,000 | 737,000 |
| Interest coverage | 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 | 12.91 | 9.86 | 3.03 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,623,000K ÷ $702,000K
= 12.28
Qualcomm Incorporated's interest coverage ratio has fluctuated over the past few quarters, indicating variations in the company's ability to cover its interest expenses. The interest coverage ratio measures the company's ability to pay interest on outstanding debt using its operating income.
In the most recent quarter (Dec 31, 2023), Qualcomm's interest coverage ratio stood at 12.28, which indicates that the company generated operating income 12.28 times higher than its interest expenses during that period. This suggests a healthy ability to meet its interest obligations.
Looking at the trend over the past few quarters, the interest coverage ratio has generally been strong, with values consistently above 10. This indicates that Qualcomm has been comfortably covering its interest expenses. The highest interest coverage ratio was observed in Sep 30, 2022, at 31.60, indicating a robust ability to cover interest payments with operating income.
It is also worth noting a slight dip in the interest coverage ratio in the most recent quarter compared to the preceding quarters. Investors and analysts may want to monitor this trend to ensure that Qualcomm's operating income remains sufficient to cover interest expenses in the future.
Overall, Qualcomm's interest coverage ratio indicates a healthy financial position with the company being able to comfortably meet its interest obligations using operating income.
Peer comparison
Dec 31, 2023