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interest coverage

A calculation of a company's ability to meet its interest payments on outstanding debt. Interest coverage 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, the larger the debt burden is on the company.

Related information about interest coverage:
  1. 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 ...
     
  2. 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.
     
  3. Interest Coverage Ratio
    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.
     
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    Times Interest Earned or Interest Coverage is a great tool when measuring a company's ability to meet its debt obligations. When the interest coverage ratio is ...
     
  5. Interest Coverage - Financial Dictionary - The Free Dictionary
    A ratio of a company's EBIT to its total expenses from interest payments. The interest coverage ratio measures the company's ability to make interest payments , ...
     
  6. Interest Coverage Ratio (ICR)
    The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments. Interest coverage ratio is equal to earnings before interest and ...
     
  7. What is interest coverage? definition and meaning
    Definition of interest coverage: A calculation of a company's ability to meet its interest payments on outstanding debt. Interest coverage is equal to earnings ...
     
  8. 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 ...