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Interest Coverage Ratio Calculator
This tool is used to calculate the company interest coverage ratio based on earnings before interest and taxes and interest expense instantly.
Results
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Formula To Calculate Interest Coverage Ratio :
This is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt.
To calculate the Interest Coverage Ratio(financial), use the following formula
Interest Coverage Ratio = EBIT / Interest Expense
Where
EBIT = earnings before interest and taxes.
Example :
Company XYZ has an EBIT of $1,000 and interest expense of $1,000.
= (1000/1000) = 1
Company XYZ interest coverage ratio is 1.
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