Interest cover, EBIT over interest

One of the 64 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

Highest on this measure

#	Company	Interest cover, EBIT over interest
1	TXRH Texas Roadhouse, Inc.	399.00 x
2	HLI HOULIHAN LOKEY, INC.	398.78 x
3	FAST FASTENAL CO	394.49 x
4	GIC Global Industrial Company	386.00 x
5	VRTX VERTEX PHARMACEUTICALS INC / MA	382.17 x
6	INSP Inspire Medical Systems, Inc.	353.75 x
7	SFM Sprouts Farmers Market, Inc.	352.24 x
8	INVX INNOVEX INTERNATIONAL, INC.	344.93 x

The fifty highest on this measure, worked out from the same filings.

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.