Sandisk Corp (SNDK)
Interest coverage
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -1,408,000 | -1,431,000 | 517,000 | 131,000 | -728,000 | -602,501 | -471,116 | -8,162 | 632,720 | 540,838 | 649,948 | 804,913 | 1,113,108 | 1,489,030 | 1,680,777 | 1,711,414 | 1,691,794 | 1,516,149 | 1,343,911 | 1,058,733 |
| Interest expense (ttm) | US$ in thousands | 61,000 | 29,000 | 22,000 | 29,000 | 29,000 | 23,738 | 18,476 | 11,214 | 14,952 | 40,246 | 65,203 | 89,878 | 114,194 | 113,076 | 107,908 | 93,771 | 88,379 | 91,474 | 98,440 | 114,264 |
| Interest coverage | -23.08 | -49.34 | 23.50 | 4.52 | -25.10 | -25.38 | -25.50 | -0.73 | 42.32 | 13.44 | 9.97 | 8.96 | 9.75 | 13.17 | 15.58 | 18.25 | 19.14 | 16.57 | 13.65 | 9.27 |
June 30, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-1,408,000K ÷ $61,000K
= -23.08
The analysis of Sandisk Corp's interest coverage ratios over various periods reveals a notable fluctuation in its ability to meet interest obligations. Between June 30, 2013, and June 30, 2014, the ratios indicate a generally strong capacity to cover interest expenses, with values rising from 9.27 to 18.25. This trend suggests an improving financial position during this period, reflecting increased earnings before interest and taxes (EBIT) relative to interest expense.
However, from September 30, 2014, onwards, the ratio declines significantly, falling to 13.17 by December 31, 2014, and further decreasing to 9.75 by March 31, 2015. This downward trend indicates a weakening in the company's ability to cover interest costs, although the ratio remains positive, implying that interest expenses are still being met comfortably at this stage.
A dramatic shift occurs in the fiscal year ending June 30, 2016, when the interest coverage ratio surges to 42.32, suggesting a temporary period of exceptionally high earnings relative to interest expenses, greatly enhancing debt-servicing capacity.
Subsequent periods from September 30, 2016, through December 31, 2015, show variable ratios, generally trending downward, but still remaining positive and indicative of residual capacity to cover interest obligations.
However, from September 30, 2023, onward, the ratios turn negative, starting at -0.73 and declining further, with values reaching as low as -25.50 by December 31, 2023, and remaining negative through March 31, 2025, with an extreme low of -49.34. Negative interest coverage ratios indicate that the company’s earnings before interest and taxes are insufficient to cover interest expenses, signaling severe financial distress or significant reporting anomalies during these periods.
In summary, Sandisk Corp experienced strong interest coverage ratios for several years, reflecting stable earnings relative to interest liabilities. Nevertheless, recent data points to a substantial deterioration in this metric, with persistent negative values indicating critical challenges in meeting interest obligations, which could imply deteriorating financial health or substantial earnings declines.
Peer comparison
Jun 30, 2025