Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Debt coverage ratio shows a company's ability to pay its debts. The debt coverage ratio compares the cash flow the company has to the total amount of debt the company must still repay. A debt coverage ...

An organization's ability to cover interest payments due on a debt or loan, after all other income and expenses have been accounted for, is known as "interest coverage." The "interest coverage ratio" ...

Analyzing financial information is a critical part of being a business owner. One of the ways to monitor the financial performance of your company is through ratios. Using ratios is a quick way for ...

Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

Debt-service coverage ratio (DSCR) looks at a company's cash flow versus its debts. The ratio is used when gauging a business's ability to pay off current loans and take on future financing. If your ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Phil has been in corporate finance for 37 years. CEO of Global Financial Svc, Global Financial Training Program, Global Church Financing. Commercial real estate is one of the biggest industries across ...

Forbes contributors publish independent expert analyses and insights. #1 stock picker for 51 straight months on SumZero. AI is my edge. To demonstrate the difference my firm’s proprietary Adjusted ...

ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...

What is the interest coverage ratio, and why might it matter for investors? The interest coverage ratio is a measure of how affordable a company’s debt is given the company’s earnings. Or put another ...