Interest Coverage Ratio

on . Posted in Project Management Engineering

Interest coverage ratio, abbreviated as ICR, is how many times a company can pay its interest expenses from its earnings.

 

intrest coverage ratio Formula

\(\large{ ICR =  \frac{ EBIT }{ IE }   }\)
Symbol
\(\large{ ICR }\) = interest coverage ratio
\(\large{ EBIT }\) = earnings before interest and taxes
\(\large{ IE }\) = interest expense

 

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