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.

Interactive Brokers Group, Inc. IBKR Interest coverage

Interest coverage at other companies

Charles Schwab CorporationSCHW

4.5×+2.0×

Morgan StanleyMS

1.5×+0.1×

StoneX Group Inc.SNEX

1.1×+1.0×

S&P GlobalSPGI

22.6×+3.1×

Other financials

Income statement

See full

Revenue$1.7B+17.0%

Net income$1.2B+21.5%

EPS (diluted)$0.59+22.9%

Balance sheet

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Cash & equivalents$58.5B+37.1%

Total debt$157.0M+15.4%

Total equity$5.6B+24.1%

Total assets$218.75B+38.7%

Cash flow

See full

Operating cash flow$3.6B+39.7%

CapEx$26.0M+62.5%

Free cash flow$3.6B+39.6%

Valuation

See full

Market cap$42.77B+65.6%

Enterprise value-$15.58B-16.2%

P/E9.4×+2.1×

P/S6.6×+1.9×

Profitability

See full

Net margin70.8%+4.7pp

FCF margin260%+83.0pp

Returns & leverage

See full

Return on equity90.5%+3.6pp

Debt / equity0×0.0×

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.