Qorvo Inc (QRVO)
Interest coverage
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 104,257 | 155,815 | 62,054 | 193,596 | 142,805 | 24,353 | 64,854 | 171,991 | 303,208 | 639,725 | 923,976 | 1,027,314 | 1,244,410 | 1,281,745 | 1,224,172 | 1,080,622 | 882,578 | 663,952 | 623,074 | 514,198 |
Interest expense (ttm) | US$ in thousands | 78,328 | 75,625 | 74,551 | 69,078 | 69,245 | 69,204 | 68,689 | 68,472 | 68,463 | 68,614 | 66,876 | 65,299 | 63,326 | 61,344 | 63,469 | 71,628 | 75,198 | 78,723 | 78,170 | 67,377 |
Interest coverage | 1.33 | 2.06 | 0.83 | 2.80 | 2.06 | 0.35 | 0.94 | 2.51 | 4.43 | 9.32 | 13.82 | 15.73 | 19.65 | 20.89 | 19.29 | 15.09 | 11.74 | 8.43 | 7.97 | 7.63 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $104,257K ÷ $78,328K
= 1.33
The interest coverage ratio of Qorvo Inc has demonstrated fluctuations over the periods discussed. It started at a healthy level of 7.63 for June 30, 2020, indicating that the company's operating income was sufficient to cover its interest expenses by approximately 7.63 times.
The interest coverage ratio improved gradually over the subsequent quarters, reaching its peak at 20.89 for December 31, 2021, indicating a strong ability to cover interest payments with operating income. However, from March 31, 2022, the interest coverage ratio began to decline.
By September 30, 2024, the interest coverage ratio had dropped significantly to 0.83, which suggests that Qorvo Inc may have been facing challenges in generating enough operating income to cover its interest expenses adequately. Subsequently, there was a slight recovery in the interest coverage ratio to 2.06 by December 31, 2024.
Overall, a downward trend in the interest coverage ratio from the peak in December 31, 2021, to September 30, 2024, followed by a slight recovery, indicates potential concerns about the company's ability to comfortably meet its interest obligations with operating income during certain periods. Monitoring this ratio is crucial to understanding Qorvo Inc's financial health and ability to manage its debt obligations effectively.
Peer comparison
Mar 31, 2025