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', FBYD's interest coverage was -12.78, indicating the firm's ability to meet its interest obligations. Industry average for Services-Misc. Amusement & Recreation in '2021' stood at -0.35.
• In '2022', FBYD's interest coverage was -14.66, indicating the firm's ability to meet its interest obligations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at 1.87. Industry average increased by 2.22 compared to previous year.
• In '2023', FBYD's interest coverage was -382.68, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at 2.20. Industry average increased by 0.33 compared to previous year.
• In '2024', FBYD's interest coverage was 79.76, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at 0.66. Industry average declined by 1.53 from previous year.
Overall, FBYD'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.