Qorvo Inc (QRVO)

Interest coverage

		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	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	142,762	-85,809	-45,261	61,919	193,135	639,768	924,019	1,027,316	1,244,424	1,281,759	1,224,186	1,080,634	882,600	663,974	623,096	514,291	455,481	432,487	312,847	240,613
Interest expense (ttm)	US$ in thousands	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	60,392	51,816	44,478	41,474
Interest coverage		2.06	-1.24	-0.66	0.90	2.82	9.32	13.82	15.73	19.65	20.89	19.29	15.09	11.74	8.43	7.97	7.63	7.54	8.35	7.03	5.80

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $142,762K ÷ $69,245K
= 2.06

The interest coverage ratio for Qorvo Inc has exhibited fluctuations over the past several quarters. The ratio measures the company's ability to cover its interest expenses with its operating income. An interest coverage ratio above 1 indicates that the company is generating enough earnings to cover its interest obligations.

At the end of March 2024, the interest coverage ratio stood at 2.06, which indicates that the company's operating income was more than double its interest expenses for that period. This suggests a healthy ability to meet interest payments from the earnings generated.

On the other hand, the company faced challenges in the previous quarters, with negative interest coverage ratios in December 2023 and September 2023, indicating that the operating income was insufficient to cover the interest expenses. However, the ratio improved significantly in the following quarters, reaching levels above 15 in September 2022, June 2022, and beyond, indicating a strong ability to meet interest obligations from operating income.

Overall, Qorvo Inc's interest coverage ratio has shown variability, but the recent trend indicates an improvement in the company's ability to cover its interest expenses with operating income, reflecting a positive financial health in terms of meeting debt obligations.