Interest Coverage Ratio Calculator

The Interest Coverage Ratio measures how readily the company can pay its Interest Expense payments on its debt obligations.

If Interest Coverage Ratio increases over time:

An increasing Interest Coverage Ratio is usually a positive sign, showing the company is more able to pay its Interest Expense with its earnings.

If Interest Coverage Ratio decreases over time:

A decreasing Interest Coverage Ratio is usually a negative sign, showing the company is less able to pay its Interest Expense with its earnings.

If Interest Coverage Ratio stays the same over time:

An unchanged Interest Coverage Ratio may indicate the company''s ability to pay its Interest Expense with its earnings has remained the same.