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', INNV's interest coverage was -1.08, indicating the firm's ability to meet its interest obligations. Industry average for Medical/Nursing Services in '2021' stood at -0.36.
• In '2022', INNV's interest coverage was -1.86, indicating the firm's ability to meet its interest obligations. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2022' stood at 1.03. Industry average increased by 1.39 compared to previous year.
• In '2023', INNV's interest coverage was -32.37, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Nursing Services in '2023' stood at 0.45. Industry average declined by 0.58 from previous year.
• In '2024', INNV's interest coverage was -4.42, indicating the firm's ability to meet its interest obligations. The increase since '2023' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2024' stood at 0.28. Industry average declined by 0.17 from previous year.
Overall, INNV'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.