Sbc Medical Warrants(Sbcww) 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 SBCWW 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', SBCWW's interest coverage was 754.05, indicating the firm's ability to meet its interest obligations. Industry average for Medical/Nursing Services in '2022' stood at 1.03.
• In '2023', SBCWW's interest coverage was 1625.55, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Medical/Nursing Services in '2023' stood at 0.45. Industry average declined by 0.58 from previous year.
• In '2024', SBCWW's interest coverage was 2596.61, 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, SBCWW'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.