Stock illustration: Business direction concept, businessman standing on compass showing direction.

To say liquidity and working capital have presented unique challenges for companies throughout the pandemic would be a bit of an understatement. Yet many organizations have found ways to thrive amid the chaos across supply chains, global markets for products and services, funding sources, and other dimensions of the economy.

A late April analysis by S&P Global Market Intelligence found that the interest coverage ratio—the ratio of earnings, before interest and taxes, to interest expense—increased over the course of the pandemic for all kinds of organizations. S&P studied the GAAP filings of public companies outside the financial services sector through time, and the improvements in earnings-to-interest were dramatic.

For investment-grade businesses, the median interest coverage ratio in Q4/2021 was 8.6, considerably higher than the pre-pandemic median of 6.1. For below-investment-grade companies, the median interest coverage ratio was 4.1, a full one and a half times the pre-Covid ratio of 2.8.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2023 ALM Global, LLC. All Rights Reserved.