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', IDCC's interest coverage was 3.28, indicating the firm's ability to meet its interest obligations. Industry average for Multi-Sector Companies in '2021' stood at -1.77.
• In '2022', IDCC's interest coverage was 4.99, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2022' stood at -1.08. Industry average increased by 0.69 compared to previous year.
• In '2023', IDCC's interest coverage was 6.23, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2023' stood at -0.41. Industry average increased by 0.67 compared to previous year.
• In '2024', IDCC's interest coverage was 10.45, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Multi-Sector Companies in '2024' stood at -1.54. Industry average declined by 1.13 from previous year.
Overall, IDCC'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.