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.

M&T Bank MTB Interest coverage

Interest coverage at other companies

KeyCorpKEY

1.7×+0.7×

Truist FinancialTFC

1.7×—

PNC Financial ServicesPNC

1.8×+0.2×

Citizens Financial GroupCFG

1.7×+0.2×

Fifth Third BankFITB

1.7×+0.1×

U.S. BancorpUSB

1.7×+0.1×

Other financials

Income statement

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Revenue$2.4B+5.9%

Net income$664.0M+13.7%

EPS (diluted)$4.13+24.4%

Balance sheet

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Cash & equivalents$16.3B-28.2%

Total debt$26.8B+97.7%

Total equity$28.0B-3.5%

Total assets$214.74B+2.1%

Cash flow

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Operating cash flow$1.0B+59.4%

CapEx$96.0M+284%

Free cash flow$916.0M+50.2%

Valuation

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Market cap$32.97B+4.5%

Enterprise value$43.45B+104%

P/E11.3×-0.7×

P/S3.4×0.0×

Profitability

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Net margin29.8%+1.5pp

Returns & leverage

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Return on equity10.3%+0.9pp

Debt / equity1×+0.5×

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.