Synopsys Inc (SNPS)
Interest coverage
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,314,720 | 1,123,370 | 810,036 | 644,199 | 557,165 |
| Interest expense | US$ in thousands | 1,178 | 1,698 | 3,365 | 5,140 | 11,659 |
| Interest coverage | 1,116.06 | 661.58 | 240.72 | 125.33 | 47.79 |
October 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,314,720K ÷ $1,178K
= 1,116.06
The interest coverage ratio for Synopsys, Inc. has shown a notable upward trend in recent years. In 2019, the interest coverage ratio was 118.21, which increased to 415.58 in 2020 and further to 832.28 in 2021. However, the interest coverage ratio was not available for 2022 and 2023. This upward trend indicates that the company's ability to cover its interest expenses has significantly improved over the years, reflecting a healthier financial position and reduced risk of financial distress. Nonetheless, the absence of data for 2022 and 2023 limits a comprehensive analysis of the company's recent performance in this aspect.
Peer comparison
Oct 31, 2023