Interest coverage
Operating income relative to interest expense - how many times operating profit covers the interest bill.
Formula
Operating income ÷ interest expense (same period)
Served as: annual · ttm. Annual and quarterly observations are never mixed unlabeled.
Where the inputs come from
- OperatingIncomeLoss
- InterestExpense
Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.
How to compare it honestly
Compare against the company's own history as rates and debt loads change; sector norms differ widely.
When it is not served
Not meaningful when interest expense is zero or not filed separately; shown as missing rather than infinite.
Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.
What it cannot tell you
Operating income is not cash; coverage can look adequate while cash conversion deteriorates.
Questions worth asking next
- How does coverage move if operating income returns to its multi-year average?
- What share of the debt reprices near term per the maturity schedule?
Research prompts, not recommendations.
See it computed from filings
Related in balance sheet and liquidity: Debt / equity · Net debt · Current ratio · Quick ratio
Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.