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', LOW's interest coverage was 13.49, indicating the firm's ability to meet its interest obligations. Industry average for RETAIL: Building Materials in '2022' stood at 3.40.
• In '2023', LOW's interest coverage was 8.79, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2023' stood at 3.68. Industry average increased by 0.28 compared to previous year.
• In '2024', LOW's interest coverage was 7.86, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2024' stood at 3.79. Industry average increased by 0.11 compared to previous year.
• In '2025', LOW's interest coverage was 7.22, indicating the firm's ability to meet its interest obligations. The decline from '2024' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2025' stood at 8.29. Industry average increased by 4.50 compared to previous year.
Overall, LOW'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.