HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

## Interest Coverage Ratio

The formula for the interest coverage ratio is used to measure a company's earnings relative to the amount of interest that it pays. The interest coverage ratio is considered to be a financial leverage ratio in that it analyzes one aspect of a company's financial viability regarding its debt.

## $\frac{e}{i}$

Here,e= earnings before interest and taxes.i=interest expense

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