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Definition | : | Interest Coverage Ratio |
Category | : | Business » Finance |
Country/ Region |
: | Worldwide
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Popularity | : |
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Type | : |
Initialism
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Interest Coverage Ratio (ICR) is a measure of a company's ability to pay interest on outstanding debt.
ICR is calculated by dividing a company's Earnings Before Interest and Taxes (EBIT) divided by interest expenses for the same time period.
ICR = EBIT / Interest Expenses
The full form of ICR is Interest Coverage Ratio
Interest Coverage Ratio | Incurred Claim Ratio
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