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Interest Coverage Ratio

on . Posted in Project Management Engineering

     

Intrest Coverage Ratio Formula
\( ICR \;=\;  EBIT \;/\; IE \)
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.

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