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', PSNYW's interest coverage was -20.52, indicating the firm's ability to meet its interest obligations. Industry average for Auto Manufacturing in '2021' stood at -3.33.
• In '2022', PSNYW's interest coverage was -4.80, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Auto Manufacturing in '2022' stood at -3.00. Industry average increased by 0.33 compared to previous year.
• In '2023', PSNYW's interest coverage was -4.79, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Manufacturing in '2023' stood at -2.20. Industry average increased by 0.79 compared to previous year.
• In '2024', PSNYW's interest coverage was -5.14, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto Manufacturing in '2024' stood at -1.15. Industry average increased by 1.05 compared to previous year.
Overall, PSNYW's interest coverage has been volatile but showed an upward trend over the past 4 years.

Formula: Interest Coverage = EBIT / Interest Expense

Good Range: Minimum 3-5 desirable; below 1 is risky.