interest cover
The extent to which an organization’s *interest expenses are covered by its income before interest and taxation. The ratio is a measurement of an organization’s *leverage, and it can indicate the vulnerability of an organization in meeting interest payment commitments when faced by changes in either *interest rates or income levels.

Auditor's dictionary. 2014.

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  • interest cover — An accounting ratio, measuring the level of a company s profits relative to its interest charge in the profit and loss account. It is usually defined as profits before interest and tax divided by interest charges, but the precise definition will… …   Financial and business terms

  • interest cover — fixed charge–coverage ratio A ratio showing the number of times interest charges are covered by earnings before interest and tax. For example, a company with interest charges of £12 million and earnings before interest and tax of £36 million… …   Accounting dictionary

  • interest cover — fixed charge coverage ratio A ratio showing the number of times interest charges are covered by earnings before interest and tax (see EBIT). For example, a company with interest charges of £12 million and earnings before interest and tax of £36… …   Big dictionary of business and management

  • interest cover — / ɪntrəst ˌkʌvə/ noun the ability to pay interest payments on a loan …   Dictionary of banking and finance

  • Interest cover ratio — Der Zinsdeckungsgrad (englisch: Interest coverage ratio, ICR) ist eine betriebswirtschaftliche Kennzahl, welche angibt ob ein Unternehmen aus dem Free Cash Flow, also dem frei verfügbaren Cash Flow (Cash Flow vor Dividenden und nach laufenden… …   Deutsch Wikipedia

  • interest coverage — UK US noun [U] (also interest cover) FINANCE ► a measure of the ability of a company s profits to make the interest payments on its debt: »A company with stable earnings requires a lower level of interest coverage than one with highly variable… …   Financial and business terms

  • Cover — The purchase of a contract to offset a previously established short position. The New York Times Financial Glossary * * * ▪ I. cover cov‧er 1 [ˈkʌvə ǁ ər] noun [uncountable] 1. INSURANCE insurance against losing something or suffering damage,… …   Financial and business terms

  • cover — Used to indicate the repurchase of previously sold contracts as, he covered his short position. Short covering is synonymous with liquidating a short position or evening up a short position. The CENTER ONLINE Futures Glossary The amount above… …   Financial and business terms

  • interest coverage ratio — An alternative term for *interest cover …   Auditor's dictionary

  • Interest rate parity — is a no arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries.[1] Two assumptions central to interest rate parity are capital mobility and… …   Wikipedia

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