Learn how to assess a company's financial strength using the EBITDA-to-interest coverage ratio, focusing on its ability to ...
The article discusses leverage ratios such as debt to assets, debt to equity, debt to EBITDA, and debt to free cash flow, as well as the interest coverage ratio. Using company examples, I explain ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...