The Interest Coverage Ratio Calculator is used to calculate the interest coverage ratio.
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.
The interest coverage ratio calculation formula is as follows:
Interest Coverage Ratio = EBIT / Interest Expense