Definitions for "interest coverage ratio"
Keywords:  ebit, ebitda, ratio, expense, divided
The ratio of net income (before extraordinary items and income tax) of the business, adjusted by adding back all amounts deducted in computing the net income on account of interest and income taxes divided by the interest payable.
Earnings before interest and taxes (EBIT) divided by interest expense. Also known as TIE ratio.
earnings before interest and taxes (EBIT) divided by interest expense. This is a key ratio used by lenders to assess the ability of a company to produce sufficient cash to pay its debt obligation.
A calculation of a companys ability to meet its interest payments on outstanding...