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.

Huntington Bancshares HBAN Interest coverage

Interest coverage at other companies

JPMorgan ChaseJPM

1.8×0.0×

Fifth Third BankFITB

1.7×+0.1×

KeyCorpKEY

1.7×+0.7×

PNC Financial ServicesPNC

1.8×+0.2×

Citizens Financial GroupCFG

1.7×+0.2×

East-West BancorpEWBC

2.1×+0.3×

Other financials

Income statement

See full

Revenue$2.6B+34.0%

Net income$523.0M-0.8%

EPS (diluted)$0.25-26.5%

Balance sheet

See full

Cash & equivalents$19.2B+25.3%

Total debt$23.5B+25.1%

Total equity$32.5B+59.2%

Total assets$285.37B+36.2%

Cash flow

See full

Operating cash flow$524.0M+2.1%

CapEx$124.0M+130%

Free cash flow$400.0M-12.9%

Valuation

See full

Market cap$34.18B+45.4%

Enterprise value$38.46B+42.5%

P/E15.5×+4.0×

P/S3.9×+0.8×

Profitability

See full

Net margin25%-2.1pp

Returns & leverage

See full

Return on equity8.3%-2.0pp

Debt / equity0.7×-0.2×

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.