Interest cover
Interest cover is a measure of the adequacy of a company's profits relative to interest payments on its debt.
interest coverage
The ability of a company to meet its debt interest obligations, typically expressed as a ratio of operating profit (or EBITDA) over interest payments for a specific period.
Interest cover is a measure of a company's interest payments relative to its profits. It is calculated by dividing a company's operating profit by its interest payments for a given period.
Interest cover is regarded as a measure of a company's creditworthiness because it shows how much income there is to cover interest payments on outstanding debt.
Bond Interest Coverage
A measure of bond safety. The interest coverage of a bond is calculated by:
(a) Dividing total income by annual interest on the bond; or
(b) Dividing earnings before interest and taxes by the annual interest on the bond.
INTEREST COVERAGE RATIO - earnings before interest and taxes (EBIT) divided by interest expense. This i...
INTEREST COVERAGE TEST - A debt limitation that prohibits the issuance of additional long-term debt if ...
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's
interest coverage would, as a result of the issue, fall below some specified minimum.
Pooling of interests ...
Interest coverage ratio
Profit after net financial items plus financial expenses divided by financial expenses.
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Interest coverage ratio
Profit before tax plus interest paid and foreign exchange differences divided by interest paid and foreign exchange differences.
ISO 14001 ...
Interest coverage
A measure of a company's ability to meet its interest obligations, calculated by dividing interest payments into income. The higher the ratio the better.
Interest rate ...
Interest Coverage, TTM
Also known as Times Interest Earned, this is the ratio of Earnings before interest and taxes for the trailing twelve months divided by the trailing twelve month interest expense.
Interest cover (coverage) - Asses a firm's ability to meet interest payments by comparing profit and interest payable.It is calculated: income before interest and taxes divided by interest.
Interest Coverage
Calculations
'Fixed charges' can be interpreted in many ways, however. It could mean, for example, the funds that a company is obliged to set aside to retire debt, or dividends on preferred stock.
Interest cover
Where the lender looks at the number of times a borrower would be able to pay interest out of earnings before interest and tax. It gives the bank a basic indication of whether the borrower would be able to pay their debts.
Interest coverage
Also called times interest earned, interest coverage reflects the ability of the company to pay its interest.
Interest coverage ratio The ratio of the available for paying the for a given year to the annual interest expense.
EBITDA-To-Interest Coverage Ratio
A ratio that is used to assess a company's financial durability by examining whether it is at least profitably enough to pay off its interest expenses.
Differenciate interest coverage ratio and debt coverage ratio?
What is a good Debt Coverage Ratio?
How do you analyze debt service ratio?
» More ...
Expectations Theory
Interest Coverage Ratio
Interest Rate
Interest Rate Ceiling
Interest Rate Parity ...
Interest coverage ratio The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm's ability to pay interest.
interest cover A firm's pretax operating income (or occasionally, cash flow) divided by its interest obligations, for a given period. interest coverage A calculation of a firm's ability to meet its interest payments on outstanding...
Coverage ratios Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio.
Interest Cover
Compares the amount of interest paid by a company on its borrowings (net of any income from interest-bearing deposits) with its operating pr...(Read more)
Interest In Possession ...
1) owns the corresponding quantity of the underlying interest covered by the Option; or
2 ) owns a security convertible into the equivalent quantity of the underlying interest; or ...
Various financial ratios can be computed to measure a company's degree of solvency, such as the debt-equity ratio and the interest coverage ratio.
They include the Gearing and Interest Cover ratios and measure the extent to which the capital employed in the business has been financed either by shareholders or by borrowing and long term finance.
(1) Municipal bonds: Net revenues divided by annual debt service (2) Corporate interest coverage: E.B.I.T. divided by interest expense. (3) Preferred divided coverage: Net Income divided by preferred dividends.
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum.
Interest deduction ...
Debt-to-equity ratio
Proprietary or Equity ratio
Ratio of fixed assets to shareholders funds
Ratio of current assets to shareholders funds
Interest coverage ratio
Capital gearing ratio
Over and under capitalization ...
The first interest payment on a bond that represents interest for more than six months. A long coupon occurs when a bond's issuance date is more than six months before the first scheduled payment. A short coupon is interest covering less than six ...
 See also: Expense, Interest coverage ratio, Banks, Net present value, Funding
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