Interest Coverage Calculator
Calculate the interest coverage ratio to assess a company's ability to meet interest payments from operating earnings.
How to Use the Interest Coverage Calculator
- Enter EBIT (earnings before interest and taxes).
- Enter total interest expense.
- Click Calculate.
- Review the ratio and coverage status.
使用场景
- •Debt capacity analysis
- •Bond covenant monitoring
- •Credit risk assessment
公式
ICR = EBIT / Interest Expense
常见问题
What is a safe interest coverage ratio?
A ratio of 3 or higher is generally considered safe, meaning the company earns three times its interest obligations.
What does a ratio below 1 mean?
It means the company cannot cover its interest payments from operating earnings, indicating financial distress.
Is this calculator free?
Yes, all calculators are completely free.