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Interest Coverage Ratio Calculator

Interest Expense:

About Interest Coverage Ratio Calculator

The Interest Coverage Ratio Calculator is used to calculate the interest coverage ratio.

Interest Coverage Ratio Definition

The interest coverage ratio is a measure of the number of times a company could make the interest payments on its debt with its EBIT (earnings before interest and taxes). It is calculated by dividing a company’s EBIT of one period by the company’s interest expenses of the same period.

Interest Coverage Ratio Formula

The interest coverage ratio calculation formula is as follows:

Interest Coverage Ratio = EBIT / Interest Expense

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