Best calculation of Interest Coverage Ratio
The Interest Coverage Ratio is typically defined as EBIT/Interest Expense, with a ratio of less than 1 considered a sign of poor financial health.
I was thinking whether it would be better to use Net Interest Expense rather than Interest Expense since some companies have a sizable interest income? This would provide a more accurate financial picture in my opinion; does my logic make sense?
Hey Prospect in AM - Other, I think you deserve a response...heck, everyone does. We're listening, sorry about the delay ...my best guess at places on WSO that could help:
More suggestions...
Fingers crossed that one of those helps you.
bump
(EBITDA - Capex) / Net Cash Interest
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