Interest Coverage
The latest 12 months' earnings before interest and taxes (EBIT) divided by the latest 12 months' interest expense (all taken from the income statement).
Interest Coverage Ratio
Quick Definition
Measures how well a company can make payments on its debt.
EBITDA-To-Interest Coverage Ratio
Investment Dictionary:
EBITDA-To-Interest Coverage Ratio
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Interest coverage ratio
The interest coverage ratio is a measurement of the debt in a company and refers to the number of times a company can make interest payment with earnings before the interest and tax payments.
Interest Coverage
The ratio measuring a firm's ability to pay interest on its debt, calculated by dividing net earnings before interest and taxes by the interest expense on bonds and other long-term debt.
Interest Coverage
A measure of a company's ability to pay interest on its debt (operating income divided by interest expenses).
Intraday ...
Interest Coverage Ratio (Times Interest Earned)
Indicates a company's capacity to meet interest payments. Uses EBIT (Earnings Before Interest and Taxes)
Formula
EBIT
Interest Expense ...
Interest Coverage
Profit before Interest and Taxes (PBIT)/Interest Expense ...
Interest coverage ratio
The ratio of the earnings available for paying the interest for a given year to the annual interest expense.
Interest rate agreement ...
Interest Coverage
Indicates a company’s competence in paying debt interests.
Institutional Ownership ...
Interest Coverage
Look up pretax earnings, and add back interest expense and taxes (EBIT). Divide EBIT by interest expense, and you will know how many times (hence the name) the company could have paid the interest expense on its debt.
Interest Coverage Ratio
Interest Coverage Ratio - Interest Coverage Ratio is a ratio used to determine the ease a company can pay interest on an outstanding debt.
Interest Coverage Ratio
The interest coverage ratio is used to determine a company’s ability to pay its expenses. It takes into consideration the interest a company pays on its debt.
Interest coverage : Considers the extent to which all fixed financial charges are covered.
= Earning before interest and tax / Financial charges ...
Interest Coverage = EBIT / Interest Expense
An interest coverage of 3 or above is considered reasonable. This means that the company's operating income (EBIT: earnings before interest and tax) can cover the interest payments 3 times over.
Interest coverage ratio (EBIT / interest expense).
Earnings dividend payout ratio (dividend per share / earnings per share).
Free cash flow dividend payout ratio (dividends paid / free cash flow to equity).
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.
The interest coverage ratio tells us how easily a company is able to pay interest expenses associated to the debt they currently have.
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interest coverage A calculation of a firm's ability to meet its interest payments on outstanding... interest coverage ratio A calculation of a firm's ability to meet its interest payments on outstanding...
Interest Coverage - The interest coverage is the company's latest 12 months' earnings before interest and taxes (EBIT) divided by the latest 12 months' interest expense. Interest coverage tells us how easily a company can handle its debt service.
Next, interest coverage is shown. This is earnings before interest and taxes divided by interest expense. For most companies, both the long-term and total interest coverage are shown unless they are identical.
Times Interest Earned or Interest Coverage is a great tool when measuring a company's ability to meet its debt obligations.
Also referred to as "interest coverage ratio" and "fixed-charged coverage".
TND
In currencies, this is the abbreviation for the Tunisian Dinar.
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.
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A measure of a corporation's ability to meet a certain type of expense. In general, a high coverage ratio indicates a better ability to meet the expense in question. See also dividend coverage, fixed-charge coverage, interest coverage, ...
 See also: Coverage, Interest, Cover, Ratio, Earnings
  
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