Interest Coverage Ratio Calculator
FinanceCalculate the interest coverage ratio to see how easily a company can pay interest on its outstanding debt from operating earnings.
Interest Coverage Ratio
EBIT divided by interest expense
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Odeh Ahwal0people find this calculator helpful
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Helpful
Saved
Embeds
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Frequently Asked Questions
What is a good interest coverage ratio?
A ratio of 3 or higher is generally considered healthy, showing earnings comfortably exceed interest obligations. Ratios below 1.5 are often viewed as risky.
What does an interest coverage ratio below 1 mean?
A ratio below 1 means operating earnings are not enough to cover interest payments, a serious sign of financial distress.
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