Interest coverage ratio formula (ID: 270) [Edit]
Description of the Interest coverage ratio formula
Formula for the calculation of a company's interest coverage ratio.
Formula
\[ \text{Interest coverage ratio} = \frac{\text{EBIT}}{\text{Interest expense}} \ \]
Additional information related to this formula
Related financial formulas
Cash flow interest coverage ratio • Debt-to-equity ratio • Fixed-charge coverage ratio • Total debt-to-assets ratio