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', CNL's interest coverage was -749.40, indicating the firm's ability to meet its interest obligations. Industry average for nan in '2021' stood at -0.88.
• In '2022', CNL's interest coverage was -624.12, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for nan in '2022' stood at -0.67. Industry average increased by 0.21 compared to previous year.
• In '2023', CNL's interest coverage was -877.01, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for nan in '2023' stood at -0.65. Industry average increased by 0.02 compared to previous year.
• In '2024', CNL's interest coverage was -536.62, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for nan in '2024' stood at -1.75. Industry average declined by 1.10 from previous year.
Overall, CNL'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.