Interest Coverage Ratio Calculator
The interest coverage ratio measures a company's capacity to meet interest payments.
Working with your interest coverage ratio
Your interest ratio coverage ratio, or times interest earned, is a critical measure often used by lenders in making their loan approval decisions.
By monitoring changes in your interest coverage ratio over time, you can better understand the financial dynamics of your business, identify trends and run the business more effectively. Here is a worksheet you can use to track changes in this and other important measures.