A calculation of a company's ability to meet its interest payments on outstanding debt. Interest coverage ratio is equal to earnings before interest and taxes for a time period, often one year, divided by interest expenses for the same time period. The lower the interest coverage ratio, the larger the debt burden is on the company. also called interest coverage.
Related information about interest coverage ratio:
- Interest Coverage Ratio Definition | Investopedia
Definition of 'Interest Coverage Ratio'. A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is ...
- Debt Ratios: Interest Coverage Ratio | Investopedia
Interest Coverage Ratio determines the ease with which a company can pay interest expense on outstanding debt. See this section for further detail.
- Times interest earned - Wikipedia, the free encyclopedia
Times interest earned (TIE) or interest coverage ratio is a measure of a company's ability ... When the interest coverage ratio is smaller than 1, the company is not ...
- Interest Coverage Ratio - Investing for Beginners - About.com
The interest coverage ratio is a measurement of the number of times a company can make its interest payments with its earnings before interest and taxes.
- Interest Coverage Ratio - Financial Dictionary - The Free Dictionary
The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm's ability to pay interest.
- Interest Coverage Ratio - Financial Formulas and Calculators
Interest Coverage Ratio Calculator (Click Here or Scroll Down) ... The formula for the interest coverage ratio is used to measure a company's earnings relative to ...
- Metric:Interest Coverage Ratio
View industry data on Interest Coverage Ratio and an explanation of Interest Coverage Ratio.
- Interest Coverage Ratio Definition, Example & Formula ...
We explain the definition of Interest Coverage Ratio, provide a clear example of the formula, and explain why it's an important concept in business, finance ...