Qorvo Inc (QRVO)

Interest coverage

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	142,805	193,092	1,244,410	882,578	455,481
Interest expense	US$ in thousands	69,245	68,463	63,326	75,198	60,392
Interest coverage		2.06	2.82	19.65	11.74	7.54

March 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $142,805K ÷ $69,245K
= 2.06

The interest coverage ratio measures a company's ability to meet its interest obligations on debt with its operating income. Qorvo Inc's interest coverage has been fluctuating over the past five years, ranging from a low of 2.06 in March 2024 to a high of 19.65 in March 2022.

A ratio below 1 indicates that the company may have difficulty meeting its interest payments, while a ratio above 1 suggests the company can comfortably fulfill its interest obligations from its operating income.

The trend in Qorvo Inc's interest coverage indicates some variability in its ability to cover interest payments. In general, a higher interest coverage ratio is preferred as it signifies a lower risk of default on debt obligations. It would be important to further investigate the reasons behind the fluctuations in Qorvo Inc's interest coverage ratio to assess the overall financial health and stability of the company in managing its debt obligations.