Interest-coverage ratio

Interest-coverage ratio is ratio of income from operations to interest expense. It measures the number of times that operating income can cover interest expense; also called the times-interest-earned ratio.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Interest-coverage ratio. Ratio of income from operations to interest expense. It measures the number of times that operating income can cover interest expense; also called the times-interest-earned ratio.