Interest-coverage ratio
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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.
