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.

State Street STT Interest coverage

Interest coverage at other companies

JPMorgan ChaseJPM

1.8×0.0×

Northern TrustNTRS

1.4×0.0×

SS&C TechnologiesSSNC

3.4×+0.4×

BlackrockBLK

14×+1.6×

BEN

Franklin ResourcesBEN

9.2×+2.8×

KKR & Co.KKR

3.6×+0.6×

Other financials

Income statement

See full

Revenue$3.8B+15.6%

Net income$764.0M+18.6%

EPS (diluted)$2.49+22.1%

Balance sheet

See full

Cash & equivalents$6.5B+39.9%

Total debt$25.2B+1.6%

Total equity$27.7B+3.9%

Total assets$392.17B+5.2%

Cash flow

See full

Operating cash flow-$12.1B-607%

CapEx$270.0M+19.5%

Free cash flow-$12.4B-672%

Valuation

See full

Market cap$46.58B+36.6%

Enterprise value$65.3B+17.3%

P/E15.2×+3.3×

P/S3.2×+0.6×

Profitability

See full

Net margin21.2%-0.6pp

Returns & leverage

See full

Return on equity11.3%0.0pp

Debt / equity0.9×0.0×

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.