Cincinnati Financial (Cincinnati Financial) Interest Coverage

: 107.43 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's EBIT by its Interest Expense. Cincinnati Financial's EBIT for the three months ended in Dec. 2023 was $1,504 Mil. Cincinnati Financial's Interest Expense for the three months ended in Dec. 2023 was $-14 Mil. Cincinnati Financial's interest coverage for the quarter that ended in Dec. 2023 was 107.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Cincinnati Financial's Interest Coverage or its related term are showing as below:

CINF' s Interest Coverage Range Over the Past 10 Years
Min: 5.74 Med: 17.62 Max: 70.77
Current: 43.15

CINF's Interest Coverage is ranked better than
69.02% of 326 companies
in the Insurance industry
Industry Median: 13.355 vs CINF: 43.15

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cincinnati Financial Interest Coverage Historical Data

The historical data trend for Cincinnati Financial's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Cincinnati Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

47.64

28.76

70.77

43.15

Cincinnati Financial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																100.00	20.14	52.23	-	107.43

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Cincinnati Financial's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cincinnati Financial Interest Coverage Distribution

For the Insurance industry and Financial Services sector, Cincinnati Financial's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cincinnati Financial's Interest Coverage falls into.

Cincinnati Financial Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and EBIT is positive, then

Interest Coverage

-1

EBIT

Interest Expense

Else if Interest Expense is negative and EBIT is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cincinnati Financial's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Cincinnati Financial's Interest Expense was $-54 Mil. Its EBIT was $2,330 Mil. And its Long-Term Debt & Capital Lease Obligation was $849 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	2330	/	-54
	=	43.15

Cincinnati Financial's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Cincinnati Financial's Interest Expense was $-14 Mil. Its EBIT was $1,504 Mil. And its Long-Term Debt & Capital Lease Obligation was $849 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1504	/	-14
	=	107.43

The higher the ratio, the stronger the company's Financial Strength is.

Cincinnati Financial (NAS:CINF) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Cincinnati Financial Interest Coverage Related Terms

Thank you for viewing the detailed overview of Cincinnati Financial's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Cincinnati Financial (Cincinnati Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Cincinnati Financial Corp (NAS:CINF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CCJ:Germany

Address

6200 S. Gilmore Road, Fairfield, OH, USA, 45014-5141

Website

https://www.cinfin.com

Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The company operates in segments: Commercial lines insurance, Personal lines insurance, and Excess and surplus lines insurance, Life insurance, and Investments. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.

Executives

Dirk J Debbink	director	PO BOX 145496, CINCINNATI OH 45250-5496
Nancy Cunningham Benacci	director	PO BOX 145496, CINCINNATI OH 45250
Steven Anthony Soloria	officer: Senior Vice President- Sub	PO BOX 145496, CINCINNATI OH 45250
Douglas S Skidmore	director	PO BOX 145496, CINCINNATI OH 45250-5496
Thomas J Aaron	director	4000 MERIDIAN BOULEVARD, FRANKLIN TN 37067
David P Osborn	director	P.O. BOX 145496, CINCINNATI OH 45250-5496
Charles Odell Schiff	director	PO BOX 145496, CINCINNATI OH 45250
Marc Jon Schambow	officer: SrVP/Chief Claims Officer	PO BOX 145496, CINCINNATI OH 45250
Teresa C Cracas	officer: Sr VP & Chief Risk Off. - Sub	PO BOX 145496, CINCINNATI OH 45250-5496
Angela Ossello Delaney	officer: Senior Vice President	PO BOX 145496, CINCINNATI OH 45250
Doyle Donald J Jr	officer: Sr Vice President - Subsidiary	CINCINNATI FINANCIAL CORPORATION, P.O. BOX 145496, CINCINNATI OH 45250-5496
Pratt Jill P. Meyer	director	PO BOX 145496, CINCINNATI OH 45250
Theresa A Hoffer	officer: Sr Vice President - Subsidiary	PO BOX 145496, CINCINNATI OH 45250
Sean Michael Givler	officer: Sr Vice President - Subsidiary	PO BOX 145496, CINCINNATI OH 45250
Roger A Brown	officer: Sr. Vice President-Subsidiary	PO BOX 145496, CINCINNATI OH 45250