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.

TPG Mortgage Investment Trust MITT Interest coverage

Interest coverage at other companies

Annaly Capital ManagementNLY

1.4×+0.3×

Angel Oak MortgageAOMR

1.2×—

TPG RE Finance Trust, Inc.TRTX

1.3×0.0×

Cherry Hill Mortgage InvestmentCHMI

1.4×+0.4×

MFA FinancialMFA

1.3×0.0×

Chimera Investment Corp.CIM

1×—

Other financials

Income statement

See full

Revenue$129.8M+18.9%

Net income-$3.6M-131%

EPS (diluted)-$0.27-229%

Balance sheet

See full

Cash & equivalents$67.7M-47.6%

Total debt$565.9M-39.5%

Total equity$544.4M+0.1%

Total assets$8.3B+13.2%

Cash flow

See full

Operating cash flow$20.3M+69.6%

Valuation

See full

Market cap$252.52M+7.1%

P/E7.5×+2.4×

P/S0.5×-0.1×

Profitability

See full

Net margin6.7%-4.3pp

Returns & leverage

See full

Return on equity6.2%-2.4pp

Debt / equity1.3×-0.8×

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.