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', BTOC's interest coverage was 47.10, indicating the firm's ability to meet its interest obligations. Industry average for Office Equipment/Supplies/Services in '2021' stood at 0.48.
• In '2022', BTOC's interest coverage was 76.99, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2022' stood at -0.12. Industry average declined by 0.60 from previous year.
• In '2023', BTOC's interest coverage was 320.15, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Office Equipment/Supplies/Services in '2023' stood at 1.37. Industry average increased by 1.49 compared to previous year.
• In '2024', BTOC's interest coverage was 219.00, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Office Equipment/Supplies/Services in '2024' stood at 1.35. Industry average declined by 0.02 from previous year.
Overall, BTOC's interest coverage has been volatile but showed an upward trend over the past 4 years.

Formula: Interest Coverage = EBIT / Interest Expense

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