Home / Financial Ratios / Interest coverage ratio

Interest coverage ratio

Financial RatiosMaximizeRatio

Definition

Ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period.

Formula

Register or log in to view the calculation formula. Sign up or log in.

Tags

expense, tax, debt, interest, earning

Metadata

Category: Financial Ratios · Added: May 17, 2026

No ratings yet
Comments (0)

Log in to rate and comment.

Be the first to comment on this KPI.