Intrest Coverage Ratio Formula |
| \( ICR \;=\; \dfrac{ EBIT }{ IE }\) |
| Symbol |
| \( ICR \) = interest coverage ratio |
| \( EBIT \) = earnings before interest and taxes |
| \( IE \) = interest expense |
Interest coverage ratio, abbreviated as ICR, is how many times a company can pay its interest expenses from its earnings.
