Name: Interest Coverage

Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.

Interpretation:
• In '2021', SNX's interest coverage was 3.96, indicating the firm's ability to meet its interest obligations. Industry average for Retail: Computer Software & Peripheral Equipment in '2021' stood at 5.26.
• In '2022', SNX's interest coverage was 4.72, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Retail: Computer Software & Peripheral Equipment in '2022' stood at 7.25. Industry average increased by 1.99 compared to previous year.
• In '2023', SNX's interest coverage was 3.74, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Retail: Computer Software & Peripheral Equipment in '2023' stood at 4.42. Industry average declined by 2.83 from previous year.
• In '2024', SNX's interest coverage was 3.71, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Retail: Computer Software & Peripheral Equipment in '2024' stood at 5.50. Industry average increased by 1.07 compared to previous year.
Overall, SNX's interest coverage has consistently declined during the past 4 years.

Formula: Interest Coverage = EBIT / Interest Expense

Good Range: Minimum 3-5 desirable; below 1 is risky.