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', DJTWW's interest coverage was -89.32, indicating the firm's ability to meet its interest obligations. Industry average for Computer Software: Programming Data Processing in '2021' stood at -1.41.
• In '2022', DJTWW's interest coverage was 25.78, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Programming Data Processing in '2022' stood at -0.87. Industry average increased by 0.54 compared to previous year.
• In '2023', DJTWW's interest coverage was -0.48, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2023' stood at 0.11. Industry average increased by 0.99 compared to previous year.
• In '2024', DJTWW's interest coverage was -128.74, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Programming Data Processing in '2024' stood at 0.15. Industry average increased by 0.04 compared to previous year.
Overall, DJTWW's interest coverage has been volatile but showed a downward trend over the past 4 years.

Formula: Interest Coverage = EBIT / Interest Expense

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