Interest Coverage Ratio Calculator Online

Interest Coverage Ratio Calculator

Interest Coverage Ratio Calculator

The interest coverage ratio calculator also named as times interest earned ratio .The interest coverage ratio equal to earnings before interest taxes divided interest expenses.

Formula as,

  1. interest coverage ratio = EBIT / interest expenses

let us consider,

  • Interest Expenses- The company might have decreasing earnings relative to the interest expenses. 
  •  EBIT-Higher interest payments but the same earnings as before taking out the loan will mean lower coverage ratio.

Calculate the Interest Coverage Ratio

Lockheed Martin Corp NYSE: LMT

interest coverage ratio = EBIT / interest expenses

EBIT 2019 = 8,500 millions USD

interest expenses 2019 = 650 millions USD

And by using our spectacular interest coverage ratio calculator on the left, we get:

interest coverage ratio = 13.08

Boeing Company NYSE: BA

EBIT 2019 = -1,900millions USD

interest expenses 2019 = 700 millions USD

interest coverage ratio = -2.71

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