Synnex Corporation (SNX)
Interest coverage
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,194,210 | 1,078,030 | 1,050,870 | 623,218 | 521,341 |
| Interest expense | US$ in thousands | 319,458 | 288,318 | 222,578 | 157,835 | 132,954 |
| Interest coverage | 3.74 | 3.74 | 4.72 | 3.95 | 3.92 |
November 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,194,210K ÷ $319,458K
= 3.74
The interest coverage ratio for Synnex Corporation has shown relatively stable performance over the past five years. In November 2020, the interest coverage was 3.92, indicating that the company earned 3.92 times its interest expenses. This ratio slightly improved to 3.95 in November 2021, suggesting a continued ability to cover interest payments comfortably.
In November 2022, the interest coverage ratio increased significantly to 4.72, indicating a stronger ability to meet interest obligations. However, there was a slight decline in November 2023 to 3.74, before remaining consistent at 3.74 in November 2024.
Overall, Synnex Corporation has demonstrated consistent but not exceptional coverage of interest expenses over the past five years. It is essential for the company to continue monitoring its interest coverage ratio to ensure it maintains a healthy financial position and can meet its debt obligations effectively.
Peer comparison
Nov 30, 2024