Synnex Corporation (SNX)

Interest coverage

		Feb 29, 2024	Nov 30, 2023	Aug 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	Aug 31, 2019	May 31, 2019	Feb 28, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,127,721	1,159,311	1,114,091	1,126,595	1,050,873	902,076	808,746	703,910	623,218	638,232	622,401	562,644	521,341	294,918	371,400	457,911	519,429	746,368	651,356	600,703
Interest expense (ttm)	US$ in thousands	157,664	161,921	280,170	260,435	222,578	228,496	203,770	179,363	161,325	103,196	106,824	119,567	132,954	145,683	159,063	166,827	172,777	176,032	152,969	128,978
Interest coverage		7.15	7.16	3.98	4.33	4.72	3.95	3.97	3.92	3.86	6.18	5.83	4.71	3.92	2.02	2.33	2.74	3.01	4.24	4.26	4.66

February 29, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,127,721K ÷ $157,664K
= 7.15

The interest coverage ratio of Synnex Corporation has shown some fluctuations over the past few years. The ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a better ability to cover interest expenses.

Looking at the data provided, we can observe varying levels of interest coverage over the last few quarters, ranging from a low of 2.02 to a high of 7.16. The interest coverage ratio has generally been above 3.0, which suggests that Synnex Corporation has been able to comfortably cover its interest expenses with its operating income.

The highest interest coverage ratios of around 7.0 indicate that the company had significant earnings relative to its interest expenses in those periods. However, there were also instances where the ratio dropped below 4.0, indicating a tighter financial position concerning interest obligations.

Overall, it is essential for investors and stakeholders to monitor the interest coverage ratio of Synnex Corporation continuously to assess the company's financial health and its ability to service its debt obligations.