Interest cover, EBIT over interest

Interest cover, EBIT over interest

One of the 61 measures in Stock Scorer, under Resilience — Can the balance sheet absorb a bad year?

How it is worked out

Operating income ÷ interest expense

How many times over the operating profit covers the interest bill. A company with no debt has nothing to cover and takes the top mark rather than being left unmeasured.

How to read it

20x earns a 10

Which figures it needs

Computed from 2 figures taken from the filing:

• operating_income
• interest_expense

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• OperatingIncomeLoss
• ProfitLossFromOperatingActivities
• InterestExpense
• InterestExpenseDebt
• InterestExpenseNonoperating
• InterestAndDebtExpense
• FinanceCosts
• InterestPaidNet
• InterestPaidClassifiedAsOperatingActivities
• InterestPaid
• InterestExpenseOperating

Whether it counts

This measure is counted in Resilience by default. It can be taken out on the dashboard, and the dimension is then measured over whatever is left.