Enter the earning before interest and tax and the total interest expense into the calculator. The calculator will evaluate and display the interest coverage ratio.
- Efficiency Ratio Calculator
- Cash Ratio Calculator
- Asset Turnover Ratio Calculator
- Cash Coverage Ratio Calculator
Interest Coverage Ratio Formula
The following equation can be used to calculate the interest coverage ratio of a business.
ICR = EBIT / IE
- Where ICR is the interest coverage ratio
- EBIT is the earnings before tax and interst
- IE is the total interest expense
Interest Coverage Ratio Definition
The interest coverage ratio is a financial metric used to analyze businesses. It’s the number of times a company could pay the interest payments with it’s earnings.
Interest Coverage Ratio Example
How to calculate an interest coverage ratio?
- First, determine the EBIT.
Calculate the total earnings before tax and interest.
- Next, determine the total interest expense.
Calculate the interest expense.
- Finally, calculate the interest coverage ratio.
Use the equation above to calculate the interest coverage ratio.
FAQ
What is an interest coverage ratio?
An interest coverage ratio is a ratio of the total EBIT to total interest expenses of a company or business.


Related Terms
interest coverage ratio calculator |
interest coverage ratio formula |
how to calculate interest coverage ratio |
interest coverage ratio |
interest cover |
cash flow coverage ratio |
interest earned ratio |
interest cover formula |
interest coverage ratio example |
interest coverage ratio interpretation |
ebitda interest coverage |
ideal interest coverage ratio |
interest coverage ratio meaning |
interest coverage ratio adalah |
negative interest coverage ratio |
times interest ratio |
interest earned ratio formula |
cash interest coverage ratio |
interest coverage ratio analysis |
interest rate coverage ratio |
interest coverage ratio ideal |
how to calculate interest cover |
interest coverage ratio definition |
interest cover calculation |
net interest cover |
ebitda interest coverage ratio |
int coverage ratio |
cash interest coverage |
low interest coverage ratio |
icr interest coverage ratio |
earnings coverage ratio |
fixed payment coverage ratio formula |
how to calculate interest cover ratio |
how to calculate interest coverage ratio from balance sheet |
interest cover meaning |
net interest coverage ratio |
burden coverage ratio |
interest coverage ratio formula example |
define interest coverage ratio |
ebit coverage |
bond interest coverage ratio |
the interest coverage ratio |
fixed interest coverage ratio |
interpretation of interest coverage ratio |
interest service ratio |
minimum interest coverage ratio |
interest coverage definition |
damodaran interest coverage ratio |
interest cover ratio meaning |
interest coverage rate |
income coverage ratio |
debt interest coverage ratio |
interest ratios |
how to calculate interest earned ratio |
cash flow interest coverage ratio |
fixed interest cover |
average interest coverage ratio |
interest cover times |
time interest earn |
investment coverage ratio |
interest coverage ratio for banks |
standard interest coverage ratio |
times covered ratio |
significance of interest coverage ratio |
calculation of interest coverage ratio |
ebitda to interest expense ratio |
how to calculate icr ratio |
acceptable interest coverage ratio |
times interest coverage ratio |
how to work out interest cover |
cash coverage of growth ratio |
interest cover analysis |
cash flow interest coverage |
how to calculate the interest coverage ratio |
interest coverage ratio industry average |
interest expense coverage |
interest burden ratio formula |
interest coverage ratio standard |
interest coverage ratio analysis and interpretation |
pretax interest coverage |
interest coverage ratio analysis interpretation |
cash coverage ratio analysis |
interest coverage ratio interpretation example |
interest coverage ratio formula for banks |
define interest coverage |
high interest cover |
importance of interest coverage ratio |
ebitda coverage ratio calculator |
interest coverage ratio by industry |
cash interest coverage ratio formula |
analysis of interest coverage ratio |
times interest expense |