Interest coverage ratio

(redirected from Interest Coverage Ratios)

Interest coverage ratio

The ratio of earnings before interest and taxes to annual interest expense. This ratio measures a firm's ability to pay interest.

Interest Coverage Ratio

A ratio of a company's EBIT to its total expenses from interest payments. The interest coverage ratio measures the company's ability to make interest payments, such as in its debt service. A ratio above one indicates that the company is able to pay its interest, while a ratio below one means that its interest payments exceed its earnings.
References in periodicals archive ?
Specifically, we may now pay a dividend on our common stock and increase stock repurchases, provided the Company maintains minimum equity of $105 million and meets certain debt and interest coverage ratios," Oviatt said.
The class A/B, class C, class D interest coverage ratios have declined since last review from 140.
Best notes that the group's financial leverage and interest coverage ratios remain within expectations for the current rating category.
30, 2006, EDS had significant financial covenant flexibility based on actual leverage and interest coverage ratios of 1.
Best will consider the impact of this exercise on the organization's interest coverage ratios.
The FFO interest coverage ratios of PEC and PEF were 6 times (x) and 4.
The credit facility contains customary financial covenants and default provisions including that National Coal maintain minimum levels of EBITDA and liquidity and that it not exceed maximum leverage and interest coverage ratios, and limitations on additional indebtedness.
The company's low debt levels and strong cash flow generating ability have resulted in interest coverage ratios in the range of 12 times (x)-13x in recent years.
All overcollateralization (OC) and interest coverage ratios have remained stable since inception.
In addition, the class B and class C interest coverage ratios have fallen below their minimum threshold levels of 112% and 110%, respectively, to 108.
Best believes the group's leverage and interest coverage ratios remain within expectations for the current ratings.
Archstone's solid property level metrics have translated into strong consolidated fixed charge and interest coverage ratios, even when excluding the impact of transactional income from the company's taxable real estate investment trust (REIT) subsidiary.