Science Applications International Corporation Common Stock (SAIC)
Interest coverage
| 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 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 374,000 | 292,000 | 272,000 | 250,000 |
| Interest expense (ttm) | US$ in thousands | 7,000 | 130,000 | 129,000 | 126,000 | 120,000 | 113,000 | 109,000 | 105,000 | 105,000 | 106,000 | 112,000 | 118,000 | 122,000 | 116,000 | 106,000 | 96,000 | 90,000 | 84,000 | 78,000 | 66,000 |
| Interest coverage | 106.86 | 6.05 | 5.98 | 4.18 | 4.10 | 4.04 | 4.05 | 4.30 | 4.39 | 4.58 | 4.29 | 3.79 | 3.20 | 3.23 | 3.39 | 3.70 | 4.16 | 3.48 | 3.49 | 3.79 |
February 2, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $748,000K ÷ $7,000K
= 106.86
The interest coverage ratio for Science Applications International Corporation Common Stock has shown some fluctuations over the past several quarters. In the most recent quarter ending Feb 2, 2024, the interest coverage ratio improved significantly to 106.86, indicating a strong ability to cover interest expenses. This improvement is a positive sign for the company's financial health.
However, in the previous quarter ending Nov 3, 2023, the interest coverage ratio decreased to 6.05 from higher levels seen in the preceding two quarters. This dip may raise some concerns about the company's ability to meet its interest obligations comfortably.
Looking back over the last several quarters, the interest coverage ratio has generally ranged between 3.20 and 6.05. While the company has demonstrated the ability to cover its interest expenses, there have been periods where the ratio was relatively lower, suggesting a potential strain on the company's earnings in meeting its interest payments.
It is important for investors and analysts to continue monitoring Science Applications International Corporation's interest coverage ratio to assess its financial stability and ability to service its debt effectively.
Peer comparison
Feb 2, 2024