Interest Coverage measures the capacity of a company to meet up with the interest payment on its outstanding debt. It shows the number of times the business earnings before payment of interest and tax would cover its interest payments. The higher the value the better, the lower the value the more the company is burdened by debt.
Interest Coverage measures the capacity of a company to meet up with the interest payment on its outstanding debt. It shows the number of times the business earnings before payment of interest and tax would cover its interest payments. The higher the value the better, the lower the value the more the company is burdened by debt.
It can be calculated by: