interest cover

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.

interest cover

or

times interest earned

a measure of the extent to which a firm's earnings (profit before tax) cover INTEREST payments due on LOANS. It expresses profit as a ratio of interest due.

interest cover

an accounting measure of the extent to which a firm's earnings cover INTEREST payments due on LOANS that expresses profit after tax as a ratio of interest due.
Mentioned in ?
References in periodicals archive ?
This will weaken credit metrics such as post-maintenance and post-tax interest cover (PMICR) and net debt to regulated asset base (RAB).
New price control methodology credit-negative
Summary: The median social housing lettings interest cover ratio dipped to 1.
MOODY'S: ENGLISH HOUSING ASSOCIATIONS' OPERATING PERFORMANCE STRENGTHENS DESPITE DROP IN INTEREST COVERAGE
Moody's rating guidance for DP World's Baa3 rating and stable outlook is adjusted funds from operations (FFO) interest cover between 3.
Moody's affirms DP World's Baa3 and JAFZ's Ba1 ratings, stable outlooks
Calculation: interest cover (a number) is derived by dividing the company's operating profit by the finance charge.
Paper F2 financial management: F2 students know that their grasp of ratio analysis is sure to be examined, yet many still let marks go begging for the want of proper calculations. Here's a top-five countdown of the worst-understood ratios
The financial covenants attached to the new facility are a minimum interest cover of 4 times increasing in steps to 5 times from July 2013 and a maximum net debt to EBTIDA ratio of 2.
Trinity Mirror acquires bank facilities until 2015
This would, in Moody's opinion, translate into FFO interest cover that is constantly above 3.
Moody's upgrades DP World to Baa3
Negative rating triggers include a net leverage sustained above 3x and funds from operations (FFO) interest cover kept below 2x, or a sharp drop in market share.
-Fitch keeps Titan Petrokimia Nusantara at A+(idn)
Net yield = (rental income - costs)/purchase price 3 Interest cover.
BE SURE TO INVEST IN RESEARCH
Interest cover - The difference between actual rental income (less costs) and total mortgage repayments Interest cover = net rent / interest costs 4.
Research before you invest
Accordingly, the estimated year-end interest cover ratio remains well below 1 time versus the expectation that interest cover would strengthen towards 2 times.
Moody's downgrades NIG rating
This replaces the interest cover covenant with a cash flow covenant and the documents extend the maturity of Barratt's pounds 400m credit facility from February 2010 to July 2011.
Barratt shares close down 4.25p; Stocks and shares

Financial browser ?
Full browser ?