The formula for the interest coverage ratio is rather simple. Just divide the company's earnings before interest and taxes (EBIT) by the annual interest expense. Note that EBIT is also called ...

The Times Interest Earned (TIE) ratio stands as a critical indicator of a company’s ability to meet its debt obligations. This solvency metric reveals whether a business generates sufficient ...

Reviewed by Khadija Khartit Fact checked by Vikki Velasquez Financial ratios can be used to assess a company's capital ...

This formula would include minority interest ... and deferred taxes. Interest Coverage Ratio The interest coverage ratio is also concerned with interest payments. One problem with only reviewing ...