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', TOON's interest coverage was -6317.35, indicating the firm's ability to meet its interest obligations. Industry average for Movies/Entertainment in '2021' stood at 1.54.
• In '2022', TOON's interest coverage was -17.17, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Movies/Entertainment in '2022' stood at -0.50. Industry average declined by 2.04 from previous year.
• In '2023', TOON's interest coverage was -22.58, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Movies/Entertainment in '2023' stood at -0.47. Industry average increased by 0.03 compared to previous year.
• In '2024', TOON's interest coverage was -23.23, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Movies/Entertainment in '2024' stood at -1.01. Industry average declined by 0.54 from previous year.
Overall, TOON'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.