Seagate Technology PLC (STX)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 777,000 | -183,000 | 1,928,000 | 1,568,000 | 1,233,000 |
| Interest expense | US$ in thousands | 332,000 | 313,000 | 249,000 | 220,000 | 201,000 |
| Interest coverage | 2.34 | -0.58 | 7.74 | 7.13 | 6.13 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $777,000K ÷ $332,000K
= 2.34
Seagate Technology PLC's interest coverage ratio has fluctuated over the past five years, indicating varying degrees of ability to cover interest expenses with operating income.
- In June 2024, the interest coverage ratio was 2.34, suggesting that the company generated operating income 2.34 times larger than its interest expenses, which is a positive sign of financial health and debt repayment capacity.
- In June 2023, the interest coverage ratio was -0.58, indicating that the company's operating income was insufficient to cover its interest expenses. A negative interest coverage ratio raises concerns about the company's ability to meet its debt obligations.
- In both June 2022 and June 2021, the interest coverage ratios were relatively high at 7.74 and 7.13, respectively, demonstrating a strong ability to repay interest obligations.
- In June 2020, the interest coverage ratio was 6.13, also indicating a healthy ability to cover interest expenses with operating income.
Overall, Seagate Technology PLC's interest coverage has shown some volatility, with both positive and negative trends in recent years. It is essential for investors and stakeholders to monitor these fluctuations closely to assess the company's financial health and ability to meet its debt obligations effectively.
Peer comparison
Jun 30, 2024