Enact Holdings (Enact Holdings) Interest Coverage : 16.89 (As of Mar. 2024)

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What is Enact Holdings 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. Enact Holdings's EBIT for the three months ended in Mar. 2024 was $219 Mil. Enact Holdings's Interest Expense for the three months ended in Mar. 2024 was $-13 Mil. Enact Holdings's interest coverage for the quarter that ended in Mar. 2024 was 16.89. The higher the ratio, the stronger the company's financial strength is.

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

ACT' s Interest Coverage Range Over the Past 10 Years
Min: 14.63 Med: 18.37 Max: No Debt
Current: 17.09

ACT's Interest Coverage is ranked better than
53.85% of 325 companies
in the Insurance industry
Industry Median: 13.81 vs ACT: 17.09

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

Enact Holdings Interest Coverage Historical Data

The historical data trend for Enact Holdings'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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Enact Holdings Interest Coverage Chart

Enact Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

No Debt

26.89

14.63

18.37

17.42

Enact Holdings Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial												18.18	17.58	17.47	16.43	16.89

Competitive Comparison of Enact Holdings's Interest Coverage

For the Insurance - Specialty subindustry, Enact Holdings'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.

Enact Holdings's Interest Coverage Distribution in the Insurance Industry

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

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

Enact Holdings 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.

Enact Holdings'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, Enact Holdings's Interest Expense was $-52 Mil. Its EBIT was $903 Mil. And its Long-Term Debt & Capital Lease Obligation was $745 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	903.376	/	-51.867
	=	17.42

Enact Holdings's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Enact Holdings's Interest Expense was $-13 Mil. Its EBIT was $219 Mil. And its Long-Term Debt & Capital Lease Obligation was $746 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	218.882	/	-12.961
	=	16.89

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

Enact Holdings (NAS:ACT) 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 .

Enact Holdings Interest Coverage Related Terms

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

Enact Holdings (Enact Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Enact Holdings Inc (NAS:ACT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

8325 Six Forks Road, Raleigh, NC, USA, 27615

Website

https://www.enactmi.com

Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The company is engaged in the business of writing and assuming residential mortgage guaranty insurance. Its product offerings include Primary mortgage insurance, which provides protection on individual loans at specified coverage percentages. Primary mortgage insurance is placed on individual loans at the time of origination and is typically delivered to the company on a loan-by-loan basis, and Pool mortgage insurance provides coverage on a finite set of individual loans identified by the pool policy.

Executives

Genworth Holdings, Inc.	10 percent owner	6620 WEST BROAD STREET, RICHMOND VA 23230
Jerome T Upton	director	GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Michael A Bless	director	C/O ROCKWELL INTERNATIONAL INC, 777 E. WISCONSIN AVE #1400, MILWAUKEE WI 53202
Brian Gould	officer: EVP & Chief Operations Officer	8325 SIX FORKS ROAD, RALEIGH NC 27615
Rohit Gupta	director, officer: President and CEO	C/O GENWORTH FINANCIAL, INC., 6620 WEST BROAD STREET, RICHMOND VA 23230
Sheehan Daniel J Iv	director	6620 WEST BROAD STREET, RICHMOND VA 23230
Hardin Dean Mitchell	officer: EVP, CFO and Treasurer	8325 SIX FORKS ROAD, RALEIGH NC 27615
Michael Derstine	officer: EVP and Chief Risk Officer	8325 SIX FORKS ROAD, RALEIGH NC 27615
Anne G Waleski	director	1508 WEST AVENUE, RICHMOND VA 23220
Westley V Thompson	director	THE PHOENIX COMPANIES, INC., ONE AMERICAN ROW, HARTFORD CT 06102
Debra Still	director	520 MADISON AVE, 32ND FL, C/O CHIMERA INVESTMENT CORPORATION, NEW YORK NY 10022
John D Fisk	director	C/O AGNC INVESTMENT CORP., 7373 WISCONSIN AVENUE, 22ND FLOOR, BETHESDA MD 20814
Restrepo Robert P Jr	director
Dominic James Addesso	director, other: Chairperson of the Board	477 MARTINSVILLE ROAD, LIBERTY CORNER NJ 07938
Thomas J Mcinerney	director	6620 WEST BROAD STREET, RICHMOND VA 23230