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Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks. Spireframe Software, makers of Value Investor - the easiest way to learn stock analysis and valuation of stocks.  
Financial Statement Values
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Accounts Receivable Turnover
Altman’s Z Score
Average Collection Period
Basic Defense Interval
Break Even Point
Capitalization Rate
Capital Ratio
Cash Flow Adequacy
Cash Flow Liquidity Ratio
Cash Flow Margin
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Cash Ratio
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Current Assets to Total Debt
Current Ratio
Current to total Liabilities
Debt Ratio
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Dividend Payout Ratio
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Equity to Total Debt
Expense Coverage Days
Financial Leverage Index
Fixed Asset Turnover
Fixed Charge Coverage
Goodwill to Assets
Gross Profit Margin
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Interest Coverage Ratio
Interest Expense to Debt
Inventory to Sales
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Inventory Turnover
Long Term Debt to Total Capitalization
Managament Rate Of Return
Net Profit Margin
Net Worth Per Share
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Quick Ratio
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Return on Equity
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Tax Rate Percentage
Times Interest Earned
Total Asset Turnover
Working Capital to Debt
Working Capital to Total Assets
Working Capital Turnover
Interest Coverage Ratio
Earnings Before Income Taxes
 Interest Coverage Ratio =
 Interest Expense

Explanation of Interest Coverage Ratio:

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

Importance of Interest Coverage Ratio:

A high, or increasing Interest Coverage Ratio is usually a positive sign, showing the company is better able to pay its Interest Expense with its earnings.  A ratio result of 1.0 is minimal, showing the company is barely able to meet its expense payments.  Depending on the industry, a ratio value of 1.5 to 2.0 is desirable.

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