What you provide
What you provide
- EBIT: Earnings before interest and taxes for the selected period.
- Interest expense: Financing interest recognized for the matching period.
SOLVENCY / DEBT SERVICE
Measure how many times entered earnings before interest and taxes cover matching-period interest expense and expose both source amounts.
Use boundary
EBIT is divided by matching interest expense to produce a simple operating-earnings coverage multiple.
Interest coverage ratio = ebit / interest expense.
What you provide
What you receive
Use boundary
Coverage does not measure principal repayment, cash taxes, capital expenditure, working-capital needs, or covenant-specific adjustments.
This calculator is an educational scenario model, not investment, tax, accounting, or valuation advice. Confirm definitions, timing, and decisions with source documents and a qualified professional.