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', XNET's interest coverage was 11.35, indicating the firm's ability to meet its interest obligations. Industry average for Computer Software: Prepackaged Software in '2021' stood at -0.52.
• In '2022', XNET's interest coverage was 274.28, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2022' stood at -0.31. Industry average increased by 0.21 compared to previous year.
• In '2023', XNET's interest coverage was 13.15, indicating the firm's ability to meet its interest obligations. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2023' stood at -0.99. Industry average declined by 0.68 from previous year.
• In '2024', XNET's interest coverage was -2.24, indicating the firm's ability to meet its interest obligations. The decline from '2023' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2024' stood at -0.61. Industry average increased by 0.38 compared to previous year.
Overall, XNET'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.