Innsuites Hospitality Shares Of Beneficial(Iht) 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 IHT 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 '2022', IHT's interest coverage was 2.06, indicating the firm's ability to meet its interest obligations. Industry average for Investment Bankers/Brokers/Service in '2022' stood at 1.24.
• In '2023', IHT's interest coverage was -0.43, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Investment Bankers/Brokers/Service in '2023' stood at 2.62. Industry average increased by 1.38 compared to previous year.
• In '2024', IHT's interest coverage was -1.24, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Investment Bankers/Brokers/Service in '2024' stood at 3.25. Industry average increased by 0.63 compared to previous year.
• In '2025', IHT's interest coverage was -1.48, indicating the firm's ability to meet its interest obligations. The decline from '2024' may indicate some operational or financial challenges. Industry average for Investment Bankers/Brokers/Service in '2025' stood at -1.48. Industry average declined by 4.74 from previous year.
Overall, IHT'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.