Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

$24.99

Analysis of Solvency Ratios
Quarterly Data

Microsoft Excel

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Solvency Ratios (Summary)

Oracle Corp., solvency ratios (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Debt Ratios
Debt to equity
Debt to capital
Debt to assets
Financial leverage
Coverage Ratios
Interest coverage

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).


Debt to Equity
The debt to equity ratio exhibited a general upward trend from August 2019 to May 2021, increasing from 2.95 to a peak of 16.08. Following this peak, there is missing data until August 2023, where an exceptionally high ratio of 84.33 was recorded, possibly indicating a data anomaly or a significant financial event. After this point, the ratio progressively declined to 4.53 by May 2025. This pattern suggests an initial increase in leverage, followed by normalization toward a lower level over time.
Debt to Capital
The debt to capital ratio rose steadily from 0.75 in August 2019 to a peak of 1.15 in November 2021, indicating a growing reliance on debt financing. After this peak, the ratio gradually decreased to 0.82 by May 2025, suggesting some deleveraging or rebalancing of the capital structure in later periods.
Debt to Assets
Debt to assets remained relatively stable with minor fluctuations, beginning at 0.51 in August 2019 and rising to 0.73 by November 2021. From there, it demonstrated a moderate downward trend to 0.55 by May 2025. This indicates that while the proportion of debt relative to asset base increased initially, it eased slightly in more recent periods.
Financial Leverage
Financial leverage increased sharply from 5.76 in August 2019 to 25.03 in May 2021. Like debt to equity, there is missing data following this peak. Recorded values starting August 2023 show an outlier of 125.24, which then steadily declines to 8.23 by May 2025. This pattern suggests a significant spike in leverage at certain points, followed by substantial reductions later on.
Interest Coverage
Interest coverage ratios began appearing from February 2020, where it was 7.05, and then slowly declined over subsequent quarters to a low of 3.33 in August 2022. There was a modest recovery thereafter, rising to 4.96 by May 2025. This indicates the company's ability to cover interest expenses weakened up to mid-2022 but improved gradually thereafter, though it remains below initial levels.

Debt Ratios


Coverage Ratios


Debt to Equity

Oracle Corp., debt to equity calculation (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current
Notes payable and other borrowings, non-current
Total debt
 
Total Oracle Corporation stockholders’ equity (deficit)
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).

1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Total Oracle Corporation stockholders’ equity (deficit)
= ÷ =

2 Click competitor name to see calculations.


The financial data reveals significant fluctuations in the company's leverage and equity position over the observed periods. The total debt exhibits variability but generally remains within a high range, fluctuating between approximately 51 billion US dollars to a peak near 96 billion US dollars. Notably, there is a pronounced increase in total debt around mid-2022, reaching a maximum in the subsequent quarters before slightly receding towards the latest periods covered.

Stockholders’ equity demonstrates a declining trend during the initial intervals, moving from a positive value slightly above 18 billion US dollars to negative territory, reaching its lowest point between late 2020 and early 2022. This indicates a period where liabilities exceeded assets, suggesting financial strain or losses being absorbed firsthand by equity holders. From mid-2023 onwards, equity values gradually recover, re-entering positive territory and increasing steadily up to over 20 billion US dollars by mid-2025, signaling improved financial stability and potential restoration of shareholder value.

The debt to equity ratio intensifies this narrative by illustrating the relationship between the company's liabilities and its equity base. The ratio starts at approximately 3 and escalates sharply during 2020 and 2021, at times reaching extreme levels (e.g., over 16 and peaking even beyond 80 in early 2023), consistent with the negative equity values and indicating a highly leveraged position. As equity recovers in the later periods, the ratio correspondingly decreases, demonstrating deleveraging or equity growth outpacing debt accumulation, with the ratio reducing to below 5 by the end of the dataset.

In summary, the company experienced significant financial pressure characterized by increased debt and declining equity culminating in negative shareholder equity around 2021 and early 2022, coinciding with very high leverage. Subsequent quarters show a period of recovery with rising equity and declining leverage, suggesting strategic financial management or operational improvements aimed at strengthening the balance sheet and enhancing solvency metrics.

Total Debt
High and volatile, generally ranging between 51 billion and 96 billion US dollars, with a peak around 2022–2024, followed by slight reduction.
Stockholders’ Equity
Declined from positive (~18 billion) to deeply negative levels (-10 billion) between 2019 and early 2022, then steadily recovered to positive territory (~20 billion) by 2025.
Debt to Equity Ratio
Increased from under 3 to over 16 during 2020-2021, with extreme peaks exceeding 80 during early 2023 due to negative equity; subsequently decreased as equity improved, falling below 5 by 2025.

Debt to Capital

Oracle Corp., debt to capital calculation (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current
Notes payable and other borrowings, non-current
Total debt
Total Oracle Corporation stockholders’ equity (deficit)
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).

1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


The company’s total debt has exhibited significant fluctuations over the analyzed quarters. Initially, total debt decreased from August 31, 2019, to November 30, 2019, followed by a relatively stable period until February 29, 2020. From May 31, 2020, there was a notable increase, reaching a peak around May 31, 2021, before experiencing a gradual decline. The most recent quarters show a decreasing trend in total debt, with some minor rebounds observed between late 2024 and early 2025.

Total capital displays a somewhat volatile pattern as well. After an initial drop from August 31, 2019, to February 29, 2020, total capital rose sharply by May 31, 2020. This was followed by fluctuations where values peaked around May 31, 2021, before dropping again by November 30, 2021. From early 2022 to mid-2023, total capital maintained an upward trend, reaching its highest points in late 2024 and early 2025. This indicates periods of growth and reinvestment within the company’s capital base, especially notable during the later quarters.

The debt to capital ratio illustrates the proportion of debt financing relative to total capital and has experienced noteworthy changes. Initially, the ratio was around 0.75 in August 2019, rising steadily to exceed 1.0 by August 2021, peaking at approximately 1.15 in November 2021. This indicates that during this period, debt financing eclipsed total capital, reflecting increased leverage. Subsequently, the ratio decreased consistently, falling back below 1.0 after early 2023 and continuing to decline to about 0.82 by May 31, 2025. This downward movement suggests a reduction in leverage over the more recent quarters, possibly due to debt repayment, increased capital, or a combination of both.

Overall, the data reveals a cycle of rising debt and leverage up to late 2021, followed by a strategic retrenchment with declining debt levels and leverage ratios. Total capital growth in the latter periods supports this interpretation, implying strengthening financial stability and potentially improved balance sheet management strategies in the recent quarters.


Debt to Assets

Oracle Corp., debt to assets calculation (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Selected Financial Data (US$ in millions)
Notes payable and other borrowings, current
Notes payable and other borrowings, non-current
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).

1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals notable trends in the company's debt, assets, and leverage over the periods observed.

Total Debt
Total debt exhibited fluctuations with a general upward trend from August 2019 through the end of the data period. Starting at approximately $54.44 billion in August 2019, it decreased slightly by November 2019 but then increased significantly, peaking above $91 billion in early 2023. Following this peak, the debt level demonstrated a gradual decline, ending near $92.57 billion in May 2025. This pattern indicates periods of both borrowing and repayment activity over the timeframe.
Total Assets
Total assets followed a positive trajectory, growing from about $106.23 billion in August 2019 to $168.36 billion by May 2025. This increase was marked by steady gains despite some minor fluctuations, particularly a dip around late 2021. Overall, asset expansion appears consistent and sustained, reflecting ongoing investment or asset accumulation strategies.
Debt to Assets Ratio
The debt to assets ratio started near 0.51 in August 2019, indicating that just over half of the company's assets were financed by debt initially. This ratio increased notably to a high of approximately 0.73 around November 2021, suggesting a period of increased leverage. After this peak, the ratio demonstrated a gradual decrease, falling to about 0.55 by May 2025. This decline implies an improvement in the company’s leverage position, either through asset growth outpacing debt or through debt reduction.

In summary, the company experienced a general increase in total assets coupled with rises and subsequent declines in total debt. The temporary surge in the debt to assets ratio around late 2021 signals a phase of higher leverage, which was later mitigated. The overall pattern suggests a strategic management of debt relative to asset base to maintain or improve financial stability over the examined periods.


Financial Leverage

Oracle Corp., financial leverage calculation (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Selected Financial Data (US$ in millions)
Total assets
Total Oracle Corporation stockholders’ equity (deficit)
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).

1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Total Oracle Corporation stockholders’ equity (deficit)
= ÷ =

2 Click competitor name to see calculations.


The quarterly financial data reveals several notable trends regarding the company's assets, equity, and financial leverage over the examined periods.

Total Assets
The total assets exhibited a generally increasing trajectory from August 2019 through the later periods, rising from approximately 106.2 billion USD to around 168.4 billion USD by May 2025. Despite some fluctuations, including slight decreases around late 2019 and late 2021, the overall pattern demonstrates growth in asset base, particularly notable from early 2022 onward where the assets grew more robustly. This indicates expansion or acquisition activities or organic growth of asset holdings during these years.
Total Stockholders' Equity
Stockholders' equity showed a declining trend from August 2019 to early 2022, dropping from roughly 18.4 billion USD to negative territory around August and November of 2021, and remaining negative until about May 2023. This negative equity position suggests periods of accumulated losses, significant liabilities, or other financial pressures impacting the company's net worth. However, starting mid-2023, equity turned positive and steadily increased, reaching about 20.5 billion USD by May 2025. This recovery in equity implies improvements in profitability, financial restructuring, or capital injections strengthening the company’s financial position.
Financial Leverage
Financial leverage, as measured by the ratio of total assets to stockholders' equity, exhibited substantial variation. Beginning at a moderate level of approximately 5.76 in August 2019, the ratio increased sharply to above 25 by mid-2021, indicative of rising debt or reduced equity during this time. Notably, data gaps exist during late 2021 and early 2022, which may correspond to periods of extreme volatility or data unavailability. Subsequently, leverage ratios spiked dramatically to above 125 at May 2023, coinciding with the lowest equity values, signaling very high reliance on liabilities relative to equity. After this peak, the leverage ratio consistently declined, reaching more moderate levels near 8.23 by May 2025. This trend aligns with the recovery observed in equity and suggests deleveraging efforts or improved financial health.

In summary, the data portrays a company experiencing significant financial stress around 2021 and early 2023, as evidenced by negative equity and extremely high financial leverage. Thereafter, a clear rehabilitation phase is observable, characterized by asset growth, resurgence of positive equity, and reduction in leverage. These movements reflect strategic financial management likely focused on strengthening balance sheet stability and reducing financial risk over time.


Interest Coverage

Oracle Corp., interest coverage calculation (quarterly data)

Microsoft Excel
May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 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
Selected Financial Data (US$ in millions)
Net income (loss)
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Synopsys Inc.

Based on: 10-K (reporting date: 2025-05-31), 10-Q (reporting date: 2025-02-28), 10-Q (reporting date: 2024-11-30), 10-Q (reporting date: 2024-08-31), 10-K (reporting date: 2024-05-31), 10-Q (reporting date: 2024-02-29), 10-Q (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-K (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-Q (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-K (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-Q (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-K (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-Q (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-K (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31).

1 Q4 2025 Calculation
Interest coverage = (EBITQ4 2025 + EBITQ3 2025 + EBITQ2 2025 + EBITQ1 2025) ÷ (Interest expenseQ4 2025 + Interest expenseQ3 2025 + Interest expenseQ2 2025 + Interest expenseQ1 2025)
= ( + + + ) ÷ ( + + + ) =

2 Click competitor name to see calculations.


The quarterly financial data reveals several notable trends in earnings before interest and tax (EBIT), interest expense, and interest coverage over the analyzed period.

Earnings Before Interest and Tax (EBIT)
EBIT exhibited a generally increasing trend from August 2019 to May 2020, reaching a peak of 4,275 million US dollars. This was followed by fluctuations with periodic declines around August of several years. A significant drop was observed in November 2021, registering a negative figure (-817 million US dollars). However, the EBIT quickly recovered in subsequent quarters, consistently rising from early 2022 through the latest period, reaching a high of 5,131 million US dollars by May 2025. This pattern suggests some volatility but also resilience and growth momentum in the latter stages.
Interest Expense
Interest expense remained relatively stable through most of the period, generally fluctuating between 450 and 700 million US dollars, showing a slight upward trend over time. Beginning around November 2020, the interest expense increased steadily, peaking near 978 million US dollars by May 2025. This gradual increase indicates a growing cost of debt or increased borrowings, which may have implications for future financial flexibility and warrants monitoring.
Interest Coverage Ratio
The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, showed some variation but generally declined from above 7 times in early 2020 to a low of about 3.33 times in August 2022. This decline coincides with the period of declining EBIT and increasing interest expense. From late 2022 onward, the ratio improved steadily, reaching nearly 5 times by May 2025. This recovery indicates an enhanced capacity to service interest payments relative to earnings, reflecting improved operational profitability and financial health despite rising interest expenses.

In summary, the financial data reflects a period of initial strong earnings growth impacted by volatility around late 2021, including a notable negative EBIT quarter, followed by consistent recovery and growth through 2025. Interest expenses show a slow upward trend, increasing the financial burden somewhat, but this is offset by improved earnings resulting in a strengthening interest coverage ratio in recent periods. Overall, the company appears to have maintained solid earnings capability relative to its interest obligations, demonstrating resilience amid fluctuations.