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MTG (MGIC Investment) Interest Coverage : 30.20 (As of Jun. 2024)


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What is MGIC Investment 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. MGIC Investment's EBIT for the three months ended in Jun. 2024 was $269 Mil. MGIC Investment's Interest Expense for the three months ended in Jun. 2024 was $-9 Mil. MGIC Investment's interest coverage for the quarter that ended in Jun. 2024 was 30.20. The higher the ratio, the stronger the company's financial strength is.

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

MTG' s Interest Coverage Range Over the Past 10 Years
Min: 4.66   Med: 13.5   Max: 27.26
Current: 27.26


MTG's Interest Coverage is ranked better than
64.17% of 321 companies
in the Insurance industry
Industry Median: 14.49 vs MTG: 27.26

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


MGIC Investment Interest Coverage Historical Data

The historical data trend for MGIC Investment'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.

MGIC Investment Interest Coverage Chart

MGIC Investment Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.10 10.38 12.24 23.68 25.45

MGIC Investment Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial 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 26.85 26.33 26.83 25.71 30.20

Competitive Comparison of MGIC Investment's Interest Coverage

For the Insurance - Specialty subindustry, MGIC Investment'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.


MGIC Investment's Interest Coverage Distribution in the Insurance Industry

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

* The bar in red indicates where MGIC Investment's Interest Coverage falls into.



MGIC Investment 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.

MGIC Investment'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, MGIC Investment's Interest Expense was $-37 Mil. Its EBIT was $939 Mil. And its Long-Term Debt & Capital Lease Obligation was $643 Mil.

Interest Coverage=-1* EBIT (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*939.134/-36.905
=25.45

MGIC Investment's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, MGIC Investment's Interest Expense was $-9 Mil. Its EBIT was $269 Mil. And its Long-Term Debt & Capital Lease Obligation was $644 Mil.

Interest Coverage=-1* EBIT (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*268.724/-8.899
=30.20

* 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.


MGIC Investment  (NYSE:MTG) 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 .


MGIC Investment Interest Coverage Related Terms

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


MGIC Investment Business Description

Traded in Other Exchanges
Address
250 E. Kilbourn Avenue, MGIC Plaza, Milwaukee, WI, USA, 53202
MGIC Investment Corp provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services. The insurance premiums that these customers pay for the protection accounts for close to majority of the company's total revenue. Investment income accounts for the remaining revenue. The company sells its insurance products in all 50 states of the United States and in Puerto Rico. Its greatest exposure is in California, Florida, Texas, Pennsylvania, Ohio, Illinois, Virginia, North Carolina, Georgia and New York.
Executives
Michael Leal Thompson director 4 BRIDGET COURT, BURR RIDGE IL 60527
Analisa M Allen director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Teresita M. Lowman director 2235 ENTERPRISE STREET #110, ESCONDIDO CA 92029
Jodee A Kozlak director 1000 NICOLLET MALL, TPS-3255, MINNEAPOLIS MN 55403
Jay C. Hartzell director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Sheryl L. Sculley director 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Gary A. Poliner director C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Daniel A. Arrigoni director C/O MGIC INVESTMENT CORPORATION, 250 E KILBOURN AVE, MILWAUKEE WI 53202
James J. Hughes officer: SVP-Sales & Bus. Development C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Michael E Lehman director
Julie K. Sperber officer: VP-Controller & Chief Acct Off MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Patrick Sinks officer: Executive Vice President 250 E KILBOURN AVE, MILWAUKEE WI 53202
Steven M. Thompson officer: EVP&CRO-Mort Gty Ins Corp 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Nathaniel H Colson officer: Executive Vice President & CFO C/O MGIC INVESTMENT CORPORATION, 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202
Robert J Candelmo officer: SVP-Chief Information Officer 250 EAST KILBOURN AVENUE, MILWAUKEE WI 53202