Interest Coverage Ratio

Fundamental ratio of EBIT (or similar) to interest expense. Higher coverage means easier debt-service capacity.

Category: Fundamental · Complexity: ★★★☆☆ (3/5)

Tags: macro, economic, fundamental

Interest Coverage Ratio chart illustration

Interest Coverage Ratio is part of the ClearPath Encyclopedia of Indicators — 184+ technical and fundamental models explained with visuals, so you can study an indicator before you put it on a live chart.

Browse the full indicator directory →