Interest Coverage Ratio Calculator
Calculate the interest coverage ratio.
About Interest Coverage Ratio Calculator
The Interest Coverage Ratio Calculator is used to calculate the interest coverage ratio.
Interest Coverage Ratio Definition
The interest coverage ratio is a measure of the number of times a company could make the interest payments on its debt with its EBIT (earnings before interest and taxes). It is calculated by dividing a company’s EBIT of one period by the company’s interest expenses of the same period.
Interest Coverage Ratio Formula
The interest coverage ratio calculation formula is as follows:
Interest Coverage Ratio = EBIT / Interest Expense
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