Synnex Corporation (SNX)

Interest coverage

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,194,211	1,156,153	1,093,507	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
Interest expense (ttm)	US$ in thousands	319,458	299,169	286,425	289,924	294,181	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
Interest coverage		3.74	3.86	3.82	3.89	3.94	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

November 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,194,211K ÷ $319,458K
= 3.74

The interest coverage ratio for Synnex Corporation shows a fluctuating trend over the years, ranging from a low of 2.02 in August 31, 2020, to a high of 6.18 in August 31, 2021. Generally, a higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its earnings.

From November 30, 2020, to February 28, 2021, there is a notable improvement in the interest coverage ratio, indicating a stronger ability to cover interest expenses. The ratio peaked at 6.18 on August 31, 2021, which suggests a significant improvement in the company's ability to service its interest payments.

However, there is a slight decline in the interest coverage ratio in the following periods, dropping to 3.74 by November 30, 2024. While the ratio still remains above 2, indicating the company's ability to cover interest expenses, the downward trend may warrant further monitoring to ensure the company's financial health and ability to meet its debt obligations in the long term.