Navigators Group (Navigators Group) Interest Coverage : 1.45 (As of Mar. 2019)

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What is Navigators Group 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. Navigators Group's EBIT for the three months ended in Mar. 2019 was $6 Mil. Navigators Group's Interest Expense for the three months ended in Mar. 2019 was $-4 Mil. Navigators Group's interest coverage for the quarter that ended in Mar. 2019 was 1.45. The higher the ratio, the stronger the company's financial strength is.

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

NAVG's Interest Coverage is not ranked ^*
in the Insurance industry.
Industry Median: 13.52
* Ranked among companies with meaningful Interest Coverage only.

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

Navigators Group Interest Coverage Historical Data

The historical data trend for Navigators Group'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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Navigators Group Interest Coverage Chart

Navigators Group Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Interest Coverage

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10.12

8.62

8.61

5.84

4.14

Navigators Group Quarterly Data
	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19
Interest Coverage	Get a 7-Day Free Trial															10.60	11.30	2.07	-	1.45

Competitive Comparison of Navigators Group's Interest Coverage

For the Insurance - Property & Casualty subindustry, Navigators Group'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.

Navigators Group's Interest Coverage Distribution in the Insurance Industry

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

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

Navigators Group 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.

Navigators Group's Interest Coverage for the fiscal year that ended in Dec. 2018 is calculated as

Here, for the fiscal year that ended in Dec. 2018, Navigators Group's Interest Expense was $-15 Mil. Its EBIT was $64 Mil. And its Long-Term Debt & Capital Lease Obligation was $264 Mil.

Interest Coverage	=	-1	*	EBIT (A: Dec. 2018 )	/	Interest Expense (A: Dec. 2018 )
	=	-1	*	64.06	/	-15.485
	=	4.14

Navigators Group's Interest Coverage for the quarter that ended in Mar. 2019 is calculated as

Here, for the three months ended in Mar. 2019, Navigators Group's Interest Expense was $-4 Mil. Its EBIT was $6 Mil. And its Long-Term Debt & Capital Lease Obligation was $264 Mil.

Interest Coverage	=	-1	*	EBIT (Q: Mar. 2019 )	/	Interest Expense (Q: Mar. 2019 )
	=	-1	*	5.624	/	-3.867
	=	1.45

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

Navigators Group (NAS:NAVG) 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 .

Navigators Group Interest Coverage Related Terms

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

Navigators Group (Navigators Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Navigators Group Inc (NAS:NAVG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

400 Atlantic Street, Stamford, CT, USA, 06901

Website

http://www.navg.com

Navigators Group is a property and casualty insurance company that operates multiple segments, including marine, property and casualty, and professional liabilities. Navigators splits these segments apart by region according to either United States exposure or international exposure. The vast majority of the company's revenue comes from its United States property and casualty business. Navigators distributes its products through a network of insurance brokers. The company considers merger and acquisition investment as a component of its operational growth strategy.

Executives

Meryl D Hartzband	director	C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901
Patricia H Roberts	director	C/O THE NAVIGATORS GROUP, INC., 400 ATLANTIC STREET, 8TH FLOOR, STAMFORD CT 06901
Denise Lowsley	officer: SVP, Chief HR Officer	C/O THE HANOVER INSURANCE GROUP, INC., 440 LINCOLN STREET, WORCESTER MA 01653
Loriann Lowery-biggers	officer: SVP,Chief Marketing Officer	BALDWIN & LYONS, INC. 111 CONGRESSIONAL BLVD. CARMEL IN 46032
Bruce J Byrnes	officer: SVP & General Counsel	399 THORNAL STREET, EDISON NJ 08837
W Thomas Forrester	director	6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143