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', UVV's interest coverage was 6.13, indicating the firm's ability to meet its interest obligations. Industry average for Farming/Seeds/Milling in '2022' stood at 0.24.
• In '2023', UVV's interest coverage was 3.88, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Farming/Seeds/Milling in '2023' stood at 1.75. Industry average increased by 1.51 compared to previous year.
• In '2024', UVV's interest coverage was 3.48, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Farming/Seeds/Milling in '2024' stood at 1.03. Industry average declined by 0.72 from previous year.
• In '2025', UVV's interest coverage was 2.94, indicating the firm's ability to meet its interest obligations. The decline from '2024' may indicate some operational or financial challenges. Industry average for Farming/Seeds/Milling in '2025' stood at 2.94. Industry average increased by 1.91 compared to previous year.
Overall, UVV'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.