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NMI Holdings Interest Coverage

: 13.07 (As of Jun. 2022)
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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. NMI Holdings's EBIT for the three months ended in Jun. 2022 was $105.2 Mil. NMI Holdings's Interest Expense for the three months ended in Jun. 2022 was $-8.1 Mil. NMI Holdings's interest coverage for the quarter that ended in Jun. 2022 was 13.07. The higher the ratio, the stronger the company's financial strength is.

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

NMIH' s Interest Coverage Range Over the Past 10 Years
Min: 1.77   Med: 10.21   Max: No Debt
Current: 11.59


NMIH's Interest Coverage is ranked worse than
56.62% of 325 companies
in the Insurance industry
Industry Median: 14.69 vs NMIH: 11.59

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


NMI Holdings Interest Coverage Historical Data

The historical data trend for NMI 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.

NMI Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.90 10.08 18.93 9.94 10.33

NMI Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 10.30 10.77 10.74 11.79 13.07

Competitive Comparison

For the Insurance - Specialty subindustry, NMI 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.

   

NMI Holdings Interest Coverage Distribution

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

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



NMI 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.

NMI 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, NMI Holdings's Interest Expense was $-31.8 Mil. Its EBIT was $328.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $394.6 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*328.521/-31.796
=10.33

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

Here, for the three months ended in Jun. 2022, NMI Holdings's Interest Expense was $-8.1 Mil. Its EBIT was $105.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $395.3 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*105.24/-8.051
=13.07

* 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.


NMI Holdings  (NAS:NMIH) 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 .


NMI Holdings Interest Coverage Related Terms

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


NMI Holdings Business Description

NMI Holdings logo
Traded in Other Exchanges
Address
2100 Powell Street, Emeryville, CA, USA, 94608
NMI Holdings Inc through its subsidiaries provides private mortgage guaranty insurance. The company offers mortgage insurance, reinsurance on loans and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, Internet-sourced lenders, and other non-bank lenders.
Executives
Fitzgerald Norman Peter officer: EVP, Chief Sales Officer 2100 POWELL ST. 12TH FLOOR EMERYVILLE CA 94608
Mallela Ravi officer: Chief Financial Officer C/O NMI HOLDINGS, INC. (NATIONAL MI) 2100 POWELL ST., 12TH FLOOR EMERYVILLE CA 94608
Yousaf Mohammad Nawaz officer: EVP, Operations & Info. Tech. 2100 POWELL ST. 12TH FLOOR EMERYVILLE CA 94608
Huskins Priya Cherian director 600 LA TERRAZA BOULEVARD ESCONDIDO CA 92025
Mccreary Lynn S. director NMI HOLDINGS, INC. (NATIONAL MI) 2100 POWELL STREET, 12TH FLOOR EMERYVILLE CA 94608
Smith Robert Owen officer: EVP, Chief Risk Officer 2100 POWELL STREET 12TH FLOOR EMERYVILLE CA 94608
Norberg Julie officer: Vice President, Controller 2100 POWELL STREET, 12TH FLOOR EMERYVILLE CA 94608
Pollitzer Adam officer: EVP, Chief Financial Officer 2100 POWELL STREET 12TH FLOOR EMERYVILLE CA 94608
Muehlhauser Regina director 2100 POWELL STREET 12TH FLOOR EMERYVILLE CA 94608
Farrell Glenn Michael officer: Chief Financial Officer C/O NMI HOLDINGS, INC. 2100 POWELL STREET, 12TH FLOOR EMERYVILLE CA 94608
Leatherberry William J officer: EVP, General Counsel 2100 POWELL STREET 12TH FLOOR EMERYVILLE CA 94608
Fore Robert Hamilton Iii officer: Vice President, Controller C/O NMI HOLDINGS, INC. 2100 POWELL STREET, 12TH FLOOR EMERYVILLE CA 94608
Pachura Stan officer: EVP, Chief Information Officer C/O NMI HOLDINGS, INC. 2100 POWELL ST., 12TH FLOOR EMERYVILLE CA 94608
Merkle Claudia J officer: EVP, Chief Insurance Officer C/O NMI HOLDINGS, INC. 2100 POWELL ST., 12TH FLOOR EMERYVILLE CA 94608
Francesconi Joseph officer: Vice President, Controller C/O NMI HOLDINGS, INC. 2100 POWELL ST., 12TH FLOOR EMERYVILLE CA 94608

NMI Holdings Headlines

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