EBITDA-to-Interest Coverage Ratio

EBITDA-to-Interest Coverage Ratio

The EBITDA-to-interest coverage ratio is the multiple of a company’s earnings before interest, tax, depreciation and amortisation – EBITDA (cf.) – to its interest service burden. It is a proxy for how comfortably a company can cover debt service from core operating profitability. It is particularly scrutinised regarding highly leveraged companies.

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