Loading the player...
Debt in an important factor to remember when analyzing a company's financial health. The interest coverage ratio serves to determine how easily a company can pay interest on outstanding debt. Learn more here.
Related Articles

Investing
How to Calculate a Coverage Ratio
In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. 
Investing
An Introduction To Coverage Ratios
Interest coverage ratios help determine a company's ability to pay down its debt. 
Investing
Analyzing WalMart's Debt Ratios in 2016 (WMT)
Analyze WalMart's debttoequity ratio, interest coverage ratio and cash flowtodebt ratio to evaluate the company's financial health and debt management. 
Investing
Analyzing General Electric's Debt Ratios in 2016 (GE)
Evaluate GE's debt picture using the most important metrics for a largecap conglomerate, including the debttoequity (D/E) ratio and the interest coverage ratio. 
Investing
Understanding Leverage Ratios
Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios  including the debt, ... 
Investing
Analyzing Comcast's Debt Ratios in 2016 (CMCSA)
Evaluate Comcast's most important debt ratios, and determine whether the company is using debt responsibly and capable of meeting obligations. 
Investing
Analyzing AT&T's Debt Ratios in 2016 (T)
Learn about AT&T Inc. and its key debt ratios, such as the debttoequity ratio, interest coverage ratio and cash flowtodebt ratio. 
Investing
Debt Ratio
The debt ratio divides a company’s total debt by its total assets to tell us how highly leveraged a company is—in other words, how much of its assets are financed by debt. The debt component ... 
Investing
Analyzing Verizon's Debt Ratios in 2016 (VZ)
Analyze Verizon's key debt ratios, and understand how the company has been able to expand in recent years by safely increasing its debt load. 
Markets
4 Leverage Ratios Used In Evaluating Energy Firms
Analysts use specific leverage ratios to compare firms within an industry. A basic understanding of these ratios helps when evaluating oil and gas stocks.