interest cover

Interest Coverage Ratio

A ratio of a company's EBIT to its total expenses from interest payments. The interest coverage ratio measures the company's ability to make interest payments, such as in its debt service. A ratio above one indicates that the company is able to pay its interest, while a ratio below one means that its interest payments exceed its earnings.

interest cover

or

times interest earned

a measure of the extent to which a firm's earnings (profit before tax) cover INTEREST payments due on LOANS. It expresses profit as a ratio of interest due.

interest cover

an accounting measure of the extent to which a firm's earnings cover INTEREST payments due on LOANS that expresses profit after tax as a ratio of interest due.