Measures a company’s ability to cover its interest cost.
Typically calculated as the ratio between (A) and (B) where:
(A) = Cash Interest Expense; and
(B) = EBITDA (could also be EBIT)
TERMinology
Our glossary of private capital terms
Our glossary of private capital terms
Measures a company’s ability to cover its interest cost.
Typically calculated as the ratio between (A) and (B) where:
(A) = Cash Interest Expense; and
(B) = EBITDA (could also be EBIT)