EBITDA-to-interest coverage ratio is a measure of a company’s ability to pay off its interest expenses using its earnings before interest, taxes, depreciation, and amortization (EBITDA). It shows how many times the company can cover its interest payments with its EBITDA. It is also known as EBITDA coverage or EBITDA-to-interest coverage ratio. The formula for EBITDA-to-interest coverage ratio is:
EBITDA-to-interest coverage ratio = EBITDA / Interest expense
Where:
- EBITDA is R0001,
ebitda
- Interest expense is IS014,
is_int_expense