Terms

  1. Home
  2. Terms
  3. Credit Analysis
  4. Interest Coverage

Interest Coverage

Parent term
Credit Analysis
Interest Coverage is a ratio that measures a company's credit worthiness by dividing EBIT by interest expense

  • Used to measure how creditworthy a company's
  • Implies how capable a firm is of paying the interest on its outstanding debt
  • A higher number means that a company is more credit worthy

Warnings and Disclaimers

The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.

Copyright Finnotes.org © 2018 - 2020