Simulations Plus Inc (SLP)
Interest coverage
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,131 | 8,725 | 14,911 | 11,107 | 11,387 |
| Interest expense | US$ in thousands | -1,116 | -1,134 | 1,678 | 22 | 0 |
| Interest coverage | — | — | 8.89 | 504.86 | — |
August 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,131K ÷ $-1,116K
= —
The interest coverage ratio for Simulations Plus Inc shows significant fluctuations over the years. In 2022, the ratio was 8.89, indicating that the company earned almost nine times its interest expenses, providing a comfortable buffer to cover its interest obligations. However, in 2021, the interest coverage ratio surged to an exceptionally high 504.86, signaling a substantial increase in the company's ability to cover its interest payments. The absence of data for 2020 and 2024 makes it challenging to assess the trend or current financial health of the company in terms of its ability to cover interest expenses. It is important for stakeholders to monitor future interest coverage ratios for a more comprehensive evaluation of Simulations Plus Inc's financial position.
Peer comparison
Aug 31, 2024