Interest Coverage Ratio Calculator
| Interest Coverage Ratio Calculator | ||
|---|---|---|
| Parameter | Description | Example Value |
| Earnings Before Interest and Taxes (EBIT) | The company’s operating income before interest and taxes are deducted. | $150,000 |
| Interest Expense | The total interest expense of the company. | $30,000 |
| Interest Coverage Ratio | The ratio of EBIT to interest expense. Formula: EBIT / Interest Expense |
5.0 |