Switch to:

NVIDIA Interest Coverage

: 71.31 (As of Oct. 2019)
View and export this data going back to 1999. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense. NVIDIA's Operating Income for the three months ended in Oct. 2019 was $927 Mil. NVIDIA's Interest Expense for the three months ended in Oct. 2019 was $-13 Mil. NVIDIA's interest coverage for the quarter that ended in Oct. 2019 was 71.31. The higher the ratio, the stronger the company's financial strength is.

NAS:NVDA' s Interest Coverage Range Over the Past 10 Years
Min: 16.5   Max: 209.87
Current: 40.57

16.5
209.87

NAS:NVDA's Interest Coverage is ranked higher than
61% of the 535 Companies
in the Semiconductors industry.

( Industry Median: 18.67 vs. NAS:NVDA: 40.57 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


NVIDIA Interest Coverage Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

NVIDIA Annual Data
Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.50 18.68 33.40 52.62 65.59

NVIDIA Quarterly Data
Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 70.53 21.00 27.54 43.92 71.31

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


NVIDIA Interest Coverage Distribution

* The bar in red indicates where NVIDIA's Interest Coverage falls into.



NVIDIA Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1*Operating Income/Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

NVIDIA's Interest Coverage for the fiscal year that ended in Jan. 2019 is calculated as

Here, for the fiscal year that ended in Jan. 2019, NVIDIA's Interest Expense was $-58 Mil. Its Operating Income was $3,804 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,988 Mil.

Interest Coverage=-1*Operating Income (A: Jan. 2019 )/Interest Expense (A: Jan. 2019 )
=-1*3804/-58
=65.59

NVIDIA's Interest Coverage for the quarter that ended in Oct. 2019 is calculated as

Here, for the three months ended in Oct. 2019, NVIDIA's Interest Expense was $-13 Mil. Its Operating Income was $927 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,459 Mil.

Interest Coverage=-1*Operating Income (Q: Oct. 2019 )/Interest Expense (Q: Oct. 2019 )
=-1*927/-13
=71.31

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The higher the ratio, the stronger the company's Financial Strength is.


NVIDIA  (NAS:NVDA) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


NVIDIA Interest Coverage Related Terms

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)