formula for intrest coverage ratio
Answers
Answered by
1
hey mate here is ur answer
The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total amount of interest expense on all of the company's outstanding debts.
follow me
Answered by
6
Answer:
The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total amount of interest expense on all of the company's outstanding debts.
Formula
\text{Times-Interest-Earned} = \frac{\text{EBITDA}}{\text{Interest Expense}}
\text{EBITDA} = earnings before interest, taxes, depreciation, and amortization
Similar questions