RLI (RLI) Interest Coverage : 32.79 (As of Dec. 2024)

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What is RLI 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. RLI's EBIT for the three months ended in Dec. 2024 was $49 Mil. RLI's Interest Expense for the three months ended in Dec. 2024 was $-1 Mil. RLI's interest coverage for the quarter that ended in Dec. 2024 was 32.79. The higher the ratio, the stronger the company's financial strength is.

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

RLI' s Interest Coverage Range Over the Past 10 Years
Min: 10.09 Med: 29.58 Max: 90.56
Current: 68.53

RLI's Interest Coverage is ranked better than
74.17% of 333 companies
in the Insurance industry
Industry Median: 14.85 vs RLI: 68.53

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

RLI Interest Coverage Historical Data

The historical data trend for RLI'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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RLI Interest Coverage Chart

RLI Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

Get a 7-Day Free Trial

25.97

45.85

90.56

52.67

68.53

RLI 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															105.46	99.88	65.40	73.25	32.79

Competitive Comparison of RLI's Interest Coverage

For the Insurance - Property & Casualty subindustry, RLI'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.

RLI's Interest Coverage Distribution in the Insurance Industry

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

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

RLI 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.

RLI'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, RLI's Interest Expense was $-6 Mil. Its EBIT was $434 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	433.882	/	-6.331
	=	68.53

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

Here, for the three months ended in Dec. 2024, RLI's Interest Expense was $-1 Mil. Its EBIT was $49 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	48.924	/	-1.492
	=	32.79

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

RLI (NYSE:RLI) 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 .

RLI Interest Coverage Related Terms

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

RLI Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » RLI Corp (NYSE:RLI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RL1:Germany

Address

9025 North Lindbergh Drive, Peoria, IL, USA, 61615

Website

https://www.rlicorp.com

RLI Corp underwrites property and casualty insurance through its subsidiaries. The company offers insurance coverage in the specialty admitted market, where the products are designed for special risks. It also offers products in the excess and surplus markets, which provides an alternative for customers with risks or loss exposures that generally cannot be written in the standard admitted market. RLI distributes property and casualty insurance through its wholly-owned branch offices that market to wholesale and retail producers. The company's insurance operation segments include Casualty, Property, and Surety and it derives a majority of its revenue from the Casualty segment.

Executives

David B. Duclos	director	505 EAVLEVIEW BLVD, SUITE 100, EXTON PA 19341
Jennifer L Klobnak	other: Sr. VP, Operations - RLI Ins.	9025 N LINDBERGH DRIVE, PEORIA IL 61615
Craig W Kliethermes	other: VP, Actuarial RLI Insurance Co	9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Jeffrey D Fick	officer: Vice President Human Resources	9025 N. LINDBERGH DRIVE, 9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Michael E Angelina	director	C/O ENDURANCE SERVICES LIMITED, 333 WESTCHESTER AVENUE, WHITE PLAINS NY 10471
Michael J Stone	other: President RLI Insurance Compan	C/O RLI CORP, 9025 N. LINDBERGH DR., PEORIA IL 61615
Paul Bennett Medini	director	THE ACE BUILDING, 17 WOODHOURNE AVE, HAMILTON BERMUDA D0 HM 08
Susan S. Fleming	director	C/O VIRTUS INVESTMENT PARTNERS, INC., 100 PEARL STREET, HARTFORD CT 06103
Seth Anthony Davis	officer: Vice President, Controller	9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Debbie Sharell Roberts	director	204 W. 59TH STREET, BURR RIDGE IL 60527
Kaj Ahlmann	director	17945 ROSEWOOD STREET, STILWELL KS 66085
Aaron Paul Diefenthaler	officer: VP, CIO	9025 N. LINDBERGH DRIVE, PEORIA IL 61615
Restrepo Robert P Jr	director
Calvin Jr Butler	director	10 SOUTH DEARBORN STREET, 54TH FLOOR, CHICAGO IL 60603
Todd Wayne Bryant	officer: Vice President, Controller	9025 N. LINDBERGH DRIVE, PEORIA IL 61615