Interest Coverage

Business, Legal & Accounting Glossary

Definition: Interest Coverage


Interest Coverage


Full Definition of Interest Coverage


A calculation of a company’s ability to meet its interest payments on outstanding debt. Interest coverage is equal to earnings before interest and taxes for a time period, often one year, divided by interest expenses for the same time period. The lower the interest coverage, the larger the debt burden is on the company.


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March 28, 2024 https://payrollheaven.com/define/interest-coverage/.
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Interest Coverage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/interest-coverage/ (accessed: March 28, 2024).
American Psychological Association (APA):
Interest Coverage. PayrollHeaven.com. Retrieved March 28, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/interest-coverage/

Definition Sources


Definitions for Interest Coverage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.