TOOLSCATALOG V2 297 Tools
Catalog / Business / Interest Coverage Ratio
Business · Tool

Interest Coverage Ratio

Check whether operating earnings are sufficient to service interest payments — a low ratio signals potential debt repayment risk.

Earnings Before Interest and Taxes (EBIT)
$
Interest Expense
$
EBIT$100,000
Interest Expense$20,000
Interest Coverage Ratio
5
times Excellent Very Low Risk Strong financial position
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Related in Business
Absence Rate Calculator → Acceptance Rate Calculator → Accounting Profit Calculator → Additional Funds Needed →
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