Term of the Day: Interest Coverage Ratio

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	INVESTOPEDIA Term Of The Day September 26, 2015 Interest Coverage Ratio A debt ratio and profitability ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio may be calculated by dividing a company's earnings before interest and taxes (EBIT) during a given period by the amount a company must pay in interest on its debts during the same period. Interest coverage ratio is also often called "times interest earned." Breaking It Down: Essentially, the interest coverage ratio measures how many times over a company could pay its current interest... Read More Related to "Interest Coverage Ratio" A Clear Look At EBITDA Normally, investors focus on cash flow, net income and revenue as the basic measures of corporate... Read More Will Corporate Debt Drag Your Stock Down? When you invest in a company, you need to look at many different financial records to see if... Read More Why Interest Coverage Matters To Investors Borrowing money is one of the most effective things a company can do to build its business. But, of course, borrowing comes with... Read More Recently Added Definitions Employee Stock Option - ESO A stock option granted to specified employees of a company. ESOs carry the right, but not the obligation... Read More Crowding Out Effect The crowding out effect is an economic theory stipulating that rises in public sector spending drive down or... Read More Related Definitions Debt-Service Coverage Ratio (DSCR) Earnings Before Interest & Tax - EBIT Interest Expense Solvency Ratio Debt/Equity Ratio Past Terms of the Day Receivables Turnover Ratio Price-Earnings Ratio - P/E Ratio Debt/Equity Swap Debt Ratio Current Ratio You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: