GURUFOCUS.COM » STOCK LIST » USA » NAS » Safety Insurance Group Inc (NAS:SAFT) » Definitions » Interest Coverage
Switch to:

Safety Insurance Group (NAS:SAFT) Interest Coverage

: 18.81 (As of Sep. 2023)
View and export this data going back to 2002. 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. Safety Insurance Group's EBIT for the three months ended in Sep. 2023 was $2.6 Mil. Safety Insurance Group's Interest Expense for the three months ended in Sep. 2023 was $-0.1 Mil. Safety Insurance Group's interest coverage for the quarter that ended in Sep. 2023 was 18.81. The higher the ratio, the stronger the company's financial strength is.

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

SAFT' s Interest Coverage Range Over the Past 10 Years
Min: 49.78   Med: 964.33   Max: 1375.23
Current: 49.78


SAFT's Interest Coverage is ranked better than
71.2% of 316 companies
in the Insurance industry
Industry Median: 12.64 vs SAFT: 49.78

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


Safety Insurance Group Interest Coverage Historical Data

The historical data trend for Safety Insurance 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.

* Premium members only.

Safety Insurance Group Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,159.34 1,375.23 398.20 315.69 114.70

Safety Insurance Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 59.89 241.95 - 62.69 18.81

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Safety Insurance 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.


Safety Insurance Group Interest Coverage Distribution

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

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



Safety Insurance 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.

Safety Insurance Group's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, Safety Insurance Group's Interest Expense was $-0.5 Mil. Its EBIT was $60.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $23.3 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2022 )/Interest Expense (A: Dec. 2022 )
=-1*60.105/-0.524
=114.70

Safety Insurance Group's Interest Coverage for the quarter that ended in Sep. 2023 is calculated as

Here, for the three months ended in Sep. 2023, Safety Insurance Group's Interest Expense was $-0.1 Mil. Its EBIT was $2.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $50.6 Mil.

Interest Coverage=-1* EBIT (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*2.615/-0.139
=18.81

* 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.


Safety Insurance Group  (NAS:SAFT) 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 .


Safety Insurance Group Interest Coverage Related Terms

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


Safety Insurance Group (NAS:SAFT) Business Description

Traded in Other Exchanges
Address
20 Custom House Street, Boston, MA, USA, 02110
Safety Insurance Group Inc is a provider of private passenger automobile insurance in Massachusetts. The company also offers property and casualty insurance products, including commercial automobiles, homeowners, dwelling fire, umbrella, and business owner policies. It operates in the business segment of Property and casualty insurance operations.
Executives
Glenn Hiltpold officer: VP of Actuarial Services 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Brophy Charles Joseph Iii director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Dennis J. Langwell director C/O LIBERTY MUTUAL GROUP, 175 BERKELEY STREET, BOSTON MA 02116
Srb Corp 10 percent owner 695 ATLANTIC AVENUE, BOSTON MA 02111
Peter J Manning director FLEETBOSTON FINANCIAL CORP, 100 FEDERAL STREET, BOSTON MA 02110
Christopher Thomas Whitford officer: VP, CFO and Secretary 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Stephen Albert Varga officer: VP - MIS 20 CUSTOM HOUSE STREET, BOSTON MA 02110
James Berry officer: VP - Insurance Operations C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Farina John Daniel Jr. director 20 CUSTOM HOUSE ST, BOSTON MA 02110
Deborah E Gray director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Frederic H Lindeberg director C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Ann Marie Mckeown officer: V.P Insurance Operations 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Moran Mary Coffey director DANVERS BANCORP, INC., ONE CONANT STREET, DANVERS MA 01923
David E Krupa officer: VP - Property Claims
David D Mckown director