interest coverage ratio

interest coverage ratio
USA
The ratio of EBITDA to interest payments due on debt for borrowed money. This financial ratio measures the company's ability to satisfy its interest payments as they become due. Higher ratios (greater than 1:1) are preferable and indicate the company is better able to satisfy such debts.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Interest Coverage Ratio — A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company s earnings before interest and taxes (EBIT) of one period by the company s interest expenses of… …   Investment dictionary

  • Interest coverage ratio — Der Zinsdeckungsgrad (englisch: Interest coverage ratio, ICR) ist eine betriebswirtschaftliche Kennzahl, welche angibt ob ein Unternehmen aus dem Free Cash Flow, also dem frei verfügbaren Cash Flow (Cash Flow vor Dividenden und nach laufenden… …   Deutsch Wikipedia

  • interest-coverage ratio — A ratio that uses historical financial information. sometimes combined with projected financial information, to measure a firm s short term credit strength. This ratio measures the firm s ability to make its required interest payments. In its… …   Financial and business terms

  • Interest coverage ratio —   The number of times that fixed interest charges were earned. It indicates the margin of safety of interest on fixed debt. The times interest earned ratio is calculated using net income before and after income taxes; and the credits of interest… …   Energy terms

  • Interest coverage ratio — The ratio of the earnings before interest and taxes to the annual interest expense. This ratio measures a firm s ability to pay interest. The New York Times Financial Glossary …   Financial and business terms

  • interest coverage ratio — The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm s ability to pay interest. Bloomberg Financial Dictionary …   Financial and business terms

  • interest coverage ratio — An alternative term for *interest cover …   Auditor's dictionary

  • EBITDA-To-Interest Coverage Ratio — A ratio that is used to assess a company s financial durability by examining whether it is at least profitably enough to pay off its interest expenses. A ratio greater than 1 indicates that the company has more than enough interest coverage to… …   Investment dictionary

  • Interest cover ratio — Der Zinsdeckungsgrad (englisch: Interest coverage ratio, ICR) ist eine betriebswirtschaftliche Kennzahl, welche angibt ob ein Unternehmen aus dem Free Cash Flow, also dem frei verfügbaren Cash Flow (Cash Flow vor Dividenden und nach laufenden… …   Deutsch Wikipedia

  • interest coverage — UK US noun [U] (also interest cover) FINANCE ► a measure of the ability of a company s profits to make the interest payments on its debt: »A company with stable earnings requires a lower level of interest coverage than one with highly variable… …   Financial and business terms

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