Science Applications International Corporation Common Stock (SAIC)
Interest coverage
| Jan 31, 2025 | Nov 1, 2024 | Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 556,000 | 497,000 | 484,000 | 721,000 | 748,000 | 786,000 | 771,000 | 527,000 | 492,000 | 457,000 | 441,000 | 451,000 | 461,000 | 485,000 | 481,000 | 447,000 | 391,000 | 375,000 | 359,000 | 355,000 |
| Interest expense (ttm) | US$ in thousands | 126,000 | 7,000 | 2,000 | 0 | -2,000 | 121,000 | 124,000 | 125,000 | 120,000 | 113,000 | 109,000 | 105,000 | 105,000 | 106,000 | 112,000 | 118,000 | 122,000 | 116,000 | 106,000 | 96,000 |
| Interest coverage | 4.41 | 71.00 | 242.00 | — | — | 6.50 | 6.22 | 4.22 | 4.10 | 4.04 | 4.05 | 4.30 | 4.39 | 4.58 | 4.29 | 3.79 | 3.20 | 3.23 | 3.39 | 3.70 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $556,000K ÷ $126,000K
= 4.41
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt obligations. A higher interest coverage ratio indicates that the company is more capable of servicing its debt, while a lower ratio may suggest potential financial distress.
Analyzing the interest coverage ratio of Science Applications International Corporation Common Stock over time, we observe the following trends:
1. The interest coverage ratio shows a generally positive trend from May 1, 2020, to August 4, 2023, with values ranging from 3.70 to 6.22. This indicates that the company's earnings were comfortably covering its interest expenses during this period.
2. However, there are significant fluctuations observed in the latter part of the data set. Specifically, the interest coverage ratio spiked to unusually high levels of 242.00 on August 2, 2024, and 71.00 on November 1, 2024. Such extreme values may be attributable to irregularities or anomalies in the financial data.
3. The interest coverage ratio returned to a more normalized level of 4.41 on January 31, 2025, following the abnormally high values in the preceding periods.
In conclusion, Science Applications International Corporation Common Stock has generally maintained a healthy interest coverage ratio, indicating adequate profitability and cash flow to meet its interest obligations. However, the significant fluctuations in the ratio towards the end of the data set warrant further investigation and scrutiny to understand the underlying reasons for such anomalies.
Peer comparison
Jan 31, 2025