learn.howToCalculate
learn.whatIsHeading
The interest coverage ratio measures how comfortably a company can pay interest on its debt from operating earnings. Interest coverage = EBIT / Interest expense. A ratio below 1.5 is a warning sign.
Пошаговое руководство
- 1Get EBIT (Earnings Before Interest and Taxes) from the income statement
- 2Get total interest expense for the period
- 3Interest coverage = EBIT / Interest expense
Решённые примеры
Ввод
EBIT £200k · Interest £40k
Результат
Coverage ratio = 5.0x
Earns 5 times what it needs to service debt
Готовы посчитать? Попробуйте бесплатный калькулятор Interest Coverage Ratio
Попробуйте сами →