International General Insurance Ltd. Ordinary Share(Igic) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for IGIC compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2020', IGIC's interest coverage was 145.46, indicating the firm's ability to meet its interest obligations. Industry average for Property-Casualty Insurers in '2020' stood at -4.51.
• In '2021', IGIC's interest coverage was 127.94, indicating the firm's ability to meet its interest obligations. The decline from '2020' may indicate some operational or financial challenges. Industry average for Property-Casualty Insurers in '2021' stood at 2.56. Industry average increased by 7.07 compared to previous year.
• In '2022', IGIC's interest coverage was 665.60, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Property-Casualty Insurers in '2022' stood at 0.08. Industry average declined by 2.48 from previous year.
Overall, IGIC'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.