Science Applications International Corporation Common Stock (SAIC)
Interest coverage
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 741,000 | 492,000 | 461,000 | 391,000 | 373,000 |
| Interest expense | US$ in thousands | 7,000 | 120,000 | 105,000 | 122,000 | 90,000 |
| Interest coverage | 105.86 | 4.10 | 4.39 | 3.20 | 4.14 |
February 2, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $741,000K ÷ $7,000K
= 105.86
The interest coverage ratio for Science Applications International Corporation Common Stock has shown significant improvement over the past five years. As of February 2, 2024, the interest coverage ratio stands at a robust 105.86, indicating that the company's operating income is sufficient to cover its interest expenses over 105 times. This represents a substantial increase from the ratios of 4.10, 4.39, 3.20, and 4.14 reported in previous years, highlighting the company's enhanced ability to meet its interest obligations.
A high interest coverage ratio is generally considered favorable as it suggests that the company is at a lower risk of defaulting on its debt payments. Science Applications International Corporation's notable improvement in interest coverage over the years reflects enhanced financial stability and the company's ability to generate strong operating profits relative to its interest expenses. This trend bodes well for the company's financial health and indicates a reduced financial risk from a debt servicing perspective.
Peer comparison
Feb 2, 2024