Mastery card
I can explain Interest Coverage Ratio
How easily operating profit covers interest bills.
Interest coverage is EBIT (or EBITDA) divided by interest expense.
Sticky trick
Interest coverage = EBIT ÷ Interest expense.
Take into the room
In plain English, what is Interest Coverage Ratio?
Or open the share card 🛡️
Or start your own 5-word trail from home.