Simulations Plus Inc (SLP)

Interest coverage

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	6,131	6,998	9,215	8,807	8,725	9,703	10,552	11,998	14,911	14,392	13,937	11,902	11,107	12,970	12,259	11,650	11,387	11,226	11,331	11,228
Interest expense (ttm)	US$ in thousands	-1,116	-1,481	-1,551	-1,439	-1,134	-553	-194	95	795	610	610	632	22	22	22	0	0	-109	-76	-38
Interest coverage		—	—	—	—	—	—	—	126.29	18.76	23.59	22.85	18.83	504.86	589.55	557.23	—	—	—	—	—

August 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,131K ÷ $-1,116K
= —

The interest coverage ratio for Simulations Plus Inc has fluctuated over the periods provided. Notably, the ratio was not reported for several periods. However, looking at the available data, we can see significant variations in the company's ability to cover its interest expenses. For example, in August 2024, the interest coverage was not reported, indicating a lack of data for that period.

In the preceding periods, the interest coverage ratio ranged from 18.76 to 589.55. This indicates that the company's ability to cover its interest expenses varied widely, with some periods showing a stronger ability to cover interest payments compared to others.

It is important to note that a higher interest coverage ratio is generally preferable as it suggests the company is more capable of servicing its debt obligations with its operating income. Conversely, a lower ratio may indicate potential financial distress if the company struggles to meet interest payments from its operating earnings.

Given the fluctuations in the interest coverage ratio over the periods provided, further analysis of the company's financial performance and debt management practices would be necessary to assess its overall financial health and ability to meet its debt obligations in the long term.