What does interest coverage mean?

How many times the company's operating profit covers its interest bill.

How do you interpret interest coverage?

Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.

How does interest coverage compare across companies?

Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.

Fifth Third Bank FITB Interest coverage

Interest coverage at other companies

Truist FinancialTFC

1.7×—

M&T BankMTB

2.1×+0.2×

JPMorgan ChaseJPM

1.8×0.0×

U.S. BancorpUSB

1.7×+0.1×

Huntington BancsharesHBAN

1.6×0.0×

PNC Financial ServicesPNC

1.8×+0.2×

Other financials

Income statement

See full

Revenue$2.8B+32.8%

Net income$165.0M-68.0%

EPS (diluted)$0.15-78.9%

Balance sheet

See full

Cash & equivalents$4.1B+35.7%

Total debt$20.0B+37.9%

Total equity$34.1B+67.2%

Total assets$297.04B+39.7%

Cash flow

See full

Operating cash flow-$1.1B-190%

CapEx$146.0M+24.8%

Free cash flow-$1.3B-212%

Valuation

See full

Market cap$47.8B+61.5%

Enterprise value$63.76B+54.4%

P/E22×+9.2×

P/S4.9×+1.4×

Profitability

See full

Net margin22.4%-4.7pp

Returns & leverage

See full

Return on equity8%-3.7pp

Debt / equity0.6×-0.1×

Questions, answered.

What does interest coverage mean?: How many times the company's operating profit covers its interest bill.
How do you interpret interest coverage?: Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.
How does interest coverage compare across companies?: Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.