Captivision Ordinary Shares(Capt) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for CAPT compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', CAPT's interest coverage was -33.11, indicating the firm's ability to meet its interest obligations. Industry average for Industrial Machinery/Components in '2021' stood at 2.55.
• In '2022', CAPT's interest coverage was -9.23, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at 2.35. Industry average declined by 0.20 from previous year.
• In '2023', CAPT's interest coverage was -29.06, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at 2.19. Industry average declined by 0.16 from previous year.
Overall, CAPT's interest coverage has been volatile but showed an upward trend over the past 3 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.