B
Glossary
Interest Coverage
Important — standard screening
What it measures
Times over that profit covers the interest bill. Under 2 risky, over 5 comfortable.
Formula
EBIT ÷ Interest ExpenseBenchmark
> 5x safe · > 10x excellent
Glossary
Important — standard screening
Times over that profit covers the interest bill. Under 2 risky, over 5 comfortable.
EBIT ÷ Interest Expense> 5x safe · > 10x excellent