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', GEV's interest coverage was -4.02, indicating the firm's ability to meet its interest obligations. Industry average for nan in '2021' stood at -0.88.
• In '2022', GEV's interest coverage was -15.38, indicating the firm's ability to meet its interest obligations. The decline from '2021' may indicate some operational or financial challenges. Industry average for nan in '2022' stood at -0.67. Industry average increased by 0.21 compared to previous year.
• In '2023', GEV's interest coverage was -0.33, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for nan in '2023' stood at -0.65. Industry average increased by 0.02 compared to previous year.
Overall, GEV'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.