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', PROF's interest coverage was -455.63, indicating the firm's ability to meet its interest obligations. Industry average for Medical/Dental Instruments in '2021' stood at -1.50.
• In '2022', PROF's interest coverage was -162.11, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2022' stood at -1.50. Industry average increased by 0.01 compared to previous year.
• In '2023', PROF's interest coverage was -37.21, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Dental Instruments in '2023' stood at -1.33. Industry average increased by 0.16 compared to previous year.
Overall, PROF'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.