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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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References in periodicals archive ?
* 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 companya[euro](tm)s CFO Craig Mitchell expects the move to strengthen the companya[euro](tm)s balance sheet, improve its interest cover ratio without affecting its debt duration and diversity, he said.Dexusa[euro](tm) remaining investment in the US is a high-quality portfolio focused in core west coast markets, the company said, adding that after this divestment, its US portfolio will account for around 8% of the groupa[euro](tm)s total assets.
Dexus to shed US central portfolio to Blackstone in USD770m deal
AMM--Amcom Telecommunications Limited 2007 2008 2009 2010 2011 Current Ratio 0.6 1.04 1.06 1.27 3.45 Cash Flow Ratio 0.59 1.29 0.96 0.95 1.17 Quick Ratio 0.54 0.96 1 1.21 3.38 Critical needs coverage 0.57 1.19 0.88 0.88 1.10 Interest Cover 34.99 13.53 11.43 32.7 23.81 Cash interest coverage 30.93 17.06 12.69 15.77 20.34 Comment--Whilst the traditional ratios and the cash flow ratios were intially very close the differences become apparent in 2011.
Liquidity analysis using cash flow ratios and traditional ratios: the telecommunications sector in Australia
This would, in Moody's opinion, translate into FFO interest cover that is constantly above 3.0x and retained cash flow to net debt in the low teens (%) in the medium term.
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)
Interest cover = net rent/ interest costs 4 Net rent 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
The ratings remain on RWN, reflecting concerns that the deterioration in market conditions has weakened DHCOG's operational performance, and will result in reduced interest cover with a risk of a covenant breach at the December 2009 year end test date.
Fitch cuts Dubai Holding company ratings
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 Kuwait NIG, maintains negative outlook
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
The Bombay sale will reduce Clapham House's net debt to pounds 15 million and will increase interest cover. Its shares are rated a buy.
Bombay sale curries favour for Clapham House debts; SHARETIPS
Sites of Special Scientific Interest cover 12.5 per cent of Scotland.
LAWS 0F THE WILD; New act a 'turning point' for nature conservation

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