GURUFOCUS.COM » STOCK LIST » USA » NAS » Enact Holdings Inc (NAS:ACT) » Definitions » Interest Coverage
Switch to:

Enact Holdings Interest Coverage

: 21.40 (As of Jun. 2022)
View and export this data going back to 2021. Start your Free Trial

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 Jun. 2022 was $274 Mil. Enact Holdings's Interest Expense for the three months ended in Jun. 2022 was $-13 Mil. Enact Holdings's interest coverage for the quarter that ended in Jun. 2022 was 21.40. 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: 26.89   Max: No Debt
Current: 17.45


ACT's Interest Coverage is ranked better than
56.07% of 321 companies
in the Insurance industry
Industry Median: 14.57 vs ACT: 17.45

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.

* Premium members only.

Enact Holdings Annual Data
Trend Dec19 Dec20 Dec21
Interest Coverage
No Debt 26.89 14.63

Enact Holdings Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.08 14.69 16.26 17.43 21.40

Competitive Comparison

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 Interest Coverage Distribution

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Enact Holdings's Interest Expense was $-51 Mil. Its EBIT was $746 Mil. And its Long-Term Debt & Capital Lease Obligation was $740 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*746.225/-51.009
=14.63

Enact Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Enact Holdings's Interest Expense was $-13 Mil. Its EBIT was $274 Mil. And its Long-Term Debt & Capital Lease Obligation was $742 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*273.673/-12.786
=21.40

* 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.


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 Business Description

Enact Holdings logo
Traded in Other Exchanges
N/A
Address
8325 Six Forks Road, Raleigh, NC, USA, 27615
Website
Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The principal mortgage insurance customers are originators of residential mortgage loans who determine which mortgage insurer or insurers they will use for the placement of mortgage insurance written on loans they originate. The company is engaged in the business of writing and assuming residential mortgage guaranty insurance.
Executives
Bless Michael A director C/O ROCKWELL INTERNATIONAL INC 777 E. WISCONSIN AVE #1400 MILWAUKEE WI 53202
Sheehan Daniel J Iv director 6620 WEST BROAD STREET RICHMOND VA 23230
Mitchell Hardin Dean officer: EVP, CFO and Treasurer 8325 SIX FORKS ROAD RALEIGH NC 27615
Gould Brian officer: EVP & Chief Operations Officer 8325 SIX FORKS ROAD RALEIGH NC 27615
Derstine Michael officer: EVP and Chief Risk Officer 8325 SIX FORKS ROAD RALEIGH NC 27615
Stolove Evan officer: EVP, Gen. Counsel & Secretary 8325 SIX FORKS ROAD RALEIGH NC 27615
Mcmullen James officer: Controller C/O GENWORTH MORTGAGE HOLDINGS, INC. 8325 SIX FORKS ROAD RALEIGH NC 27615
Genworth Holdings, Inc. 10 percent owner 6620 WEST BROAD STREET RICHMOND VA 23230
Gupta Rohit director, officer: President and CEO C/O GENWORTH FINANCIAL, INC. 6620 WEST BROAD STREET RICHMOND VA 23230
Waleski Anne G director 1508 WEST AVENUE RICHMOND VA 23220
Thompson Westley V director THE PHOENIX COMPANIES, INC. ONE AMERICAN ROW HARTFORD CT 06102
Mcinerney Thomas J director 6620 WEST BROAD STREET RICHMOND VA 23230
Still Debra director 520 MADISON AVE, 32ND FL C/O CHIMERA INVESTMENT CORPORATION NEW YORK NY 10022
Hooda Sheila director C/O VIRTUS INVESTMENT PARTNERS, INC. 100 PEARL STREET HARTFORD CT 06103
Fisk John D director C/O AGNC INVESTMENT CORP. 2 BETHESDA METRO CENTER, 12TH FLOOR BETHESDA MD 20814

Enact Holdings Headlines

Other Sources

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)