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FACO (First Acceptance) Interest Coverage : 11.16 (As of Dec. 2024)


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What is First Acceptance Interest Coverage?

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. First Acceptance's EBIT for the three months ended in Dec. 2024 was $10.5 Mil. First Acceptance's Interest Expense for the three months ended in Dec. 2024 was $-0.9 Mil. First Acceptance's interest coverage for the quarter that ended in Dec. 2024 was 11.16. The higher the ratio, the stronger the company's financial strength is.

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

FACO' s Interest Coverage Range Over the Past 10 Years
Min: 0.13   Med: 5.58   Max: 26.94
Current: 9.56


FACO's Interest Coverage is ranked worse than
60.36% of 333 companies
in the Insurance industry
Industry Median: 13.71 vs FACO: 9.56

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


First Acceptance Interest Coverage Historical Data

The historical data trend for First Acceptance'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.

* Premium members only.

First Acceptance Interest Coverage Chart

First Acceptance Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.74 - - 26.94 9.56

First Acceptance Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 84.94 10.06 9.20 7.92 11.16

Competitive Comparison of First Acceptance's Interest Coverage

For the Insurance - Specialty subindustry, First Acceptance'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.


First Acceptance's Interest Coverage Distribution in the Insurance Industry

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

* The bar in red indicates where First Acceptance's Interest Coverage falls into.


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First Acceptance 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.

First Acceptance's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, First Acceptance's Interest Expense was $-3.9 Mil. Its EBIT was $37.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $45.4 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*37.32/-3.902
=9.56

First Acceptance's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the three months ended in Dec. 2024, First Acceptance's Interest Expense was $-0.9 Mil. Its EBIT was $10.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $45.4 Mil.

Interest Coverage=-1* EBIT (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*10.488/-0.94
=11.16

* 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.

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


First Acceptance  (OTCPK:FACO) 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 .


First Acceptance Interest Coverage Related Terms

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


First Acceptance Business Description

Traded in Other Exchanges
N/A
Address
3813 Green Hills Village Drive, Nashville, TN, USA, 37215
First Acceptance Corp is engaged in the financial services sector. It is principally a retailer, servicer, and underwriter of non-standard personal automobile insurance. The company's operations generate revenue from selling non-standard personal automobile insurance products and related products in the United States. Its suite of products comprises auto insurance, renters, motorcycle, roadside assistance, and hospital insurance. the company also operates a real estate and corporate segment, which consists of the activities related to the disposition of foreclosed real estate held for sale, interest expenses associated with all debt, and other general corporate overhead expenses.
Executives
Rhodes R Bobbitt director 4500 ROLAND, #905, DALLAS TX 75219
Kenneth D Russell director 200 CRESCENT COURT, SUITE 1350, DALLAS TX 75201
Tom C Nichols director 4500 MERCANTILE PLAZA DRIVE, SUITE 300, FORT WORTH TX 76137
Brent J Gay officer: Chief Financial Officer 3813 GREEN HILLS VILLAGE DRIVE, NASHVILLE TN 37215
Olson Lyndon L Jr director 3812 GREENLEAF DRIVE, WACO TX 76710
Jeremy B Ford director
Mark A Kelly officer: Interim CEO & President 5722 WEST HANOVER, DALLAS TX 75209
Joseph S. Borbely officer: President 1572 VANDAGRIFF WAY, CORONA CA 92883
John R Barnett officer: Sr. Vice President of Finance 111 CONGRESSIONAL BLVD, STE 500, CARMEL IN 46032
Daniel L. Walker officer: Sr. VP of Operations 3322 WEST END AVENUE, NASHVILLE TN 37203
Harrison Thomas Marshall Jr director, 10 percent owner, officer: Exec. VP & Secretary 3813 GREEN HILLS VILLAGE DRIVE, NASHVILLE TN 37215
Gerald J Ford director, 10 percent owner, officer: Chairman 200 CRESCENT CT STE 1350, DALLAS TX 75201
Keith E. Bornemann officer: Corporate Controller 3322 WEST END AVENUE, NASHVILLE TN 37203
Shipp William A Jr director 9015 ENGLLISH WOOD COURT, BRENTWOOD TN 37027
Kevin P Cohn officer: VP & Chief Accounting Officer 4400 POST OAK PARKWAY, STE 1100, HOUSTON TX 77027