Interest Coverage Ratio Calculator
Calculate and analyze the Interest Coverage Ratio (ICR) to assess a company’s ability to meet its interest payment obligations using operating income.
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How to Use
- Enter EBIT or EBITDA values
- Input annual interest expense
- Select calculation method
- Choose analysis period
- Click Calculate to analyze ICR
Interpretation:
- ICR > 3.0: Strong coverage
- 1.5 < ICR < 3.0: Adequate coverage
- ICR < 1.5: Weak coverage