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.
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).
Summary: The median social housing lettings interest cover ratio dipped to 1.
Moody's rating guidance for DP World's Baa3 rating and stable outlook is adjusted funds from operations (FFO) interest cover between 3.
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.
This would, in Moody's opinion, translate into FFO interest cover that is constantly above 3.
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.
Net yield = (rental income - costs)/purchase price 3 Interest cover.
Interest cover - The difference between actual rental income (less costs) and total mortgage repayments Interest cover = net rent / interest costs 4.
Accordingly, the estimated year-end interest cover ratio remains well below 1 time versus the expectation that interest cover would strengthen towards 2 times.
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.
The fact Ahold had negotiated lower interest cover than expected on the loan was seen as evidence more accounting revelations could be around the corner, while its decision to waive a dividend was "not encouraging".