Interest Coverage Ratio,MBA智库百科翻译为利息覆盖率,百度百科翻译为利息保障倍数,是一种债务和盈利能力比率,用来衡量公司支付未偿债务利息的能力。利息覆盖率的计算方法是将公司在一定时期内的息税前利润(EBIT)除以其利息支出。 利息覆盖率有时被称为“倍数利息收入比率”。贷方、投资者和债权人经常使用这个公式来确定...
Investopedia / Laura Porter Formula and Calculation Interest Coverage Ratio=EBITInterest Expensewhere:EBIT=Earnings before interest and taxes\begin{aligned} &\text{Interest Coverage Ratio}=\frac{\text{EBIT}}{\text{Interest Expense}}\\ &\textbf{where:}\\ &\text{EBIT}=\text{Earnings before interes...
Investopedia / NoNo Flores What Is the EBITDA-to-Interest Coverage Ratio? The EBITDA-to-interest coverage ratio is a financial ratio that is used to assess a company's financial durability by examining whether it is at least profitable enough to pay off its interest expenses using its pre-tax...
Investopedia / Ellen Lindner How Interest Expenses Work Interest expense often appears as a line item on a company’s balance sheet since there are usually differences in timing between interest accrued and interest paid. If interest has been accrued but has not yet been paid, it would appear ...
A higher interest coverage ratio is usually desirable because it means a company can better fulfill its financial obligations. But, this isn't always a hard-and-fast rule because this metric can be fluid. Higher ratios are better for companies and industries that are susceptible to volatility. ...
Investopedia / Ellen Lindner What Is As Their Interests May Appear (ATIMA)? The term "as their interests may appear" (ATIMA) is a standard line in a business insurance policy that extends the coverage to some other parties doing business with the insured. The parties or their covered proper...
Thetimes interest earned ratiois a commonsolvency ratioused by both creditors and investors. Often referred to as theinterest coverage ratio, it depicts a company's ability to cover the interest owed on its debt obligations. It's expressed as income before interest and taxes ...
Investopedia / Julie Bang Formula and Calculation of the Times Interest Earned (TIE) Ratio Assume, for example, that XYZ Company has $10 million in 4% debt outstanding and $10 million in common stock. The company needs to raise more capital to purchase equipment. The cost of capital for is...
PITI is also included in calculating a borrower's debt-to-income ratio, which is the sum total of monthly obligations versus gross income. Understanding Principal, Interest, Taxes, Insurance (PITI) The principal and interest on your loan usually make up the majority of your mortgage payment. Mo...
Investopedia / Daniel Fishel Understanding Earnings Before Interest and Taxes (EBIT) EBIT, or operating profit, measures the profit generated by a company's operations. By ignoring taxes and interest expenses, EBIT identifies a company's ability to generate enough earnings to be profitable, pay down...