Coverage Ratio Calculator:
Coverage ratio is known by various
names such as interest coverage ratio, debt service
ratio, debt service coverage ratio etc. This ratio
is very important from lenders and financial
institutions point of view who provide loans to the
companies. Coverage ratio indicates
the number of times interest is covered by the
profits available to pay interest charges. The
higher the ratio, the better it is. A high coverage
ratio indicates a regular interest income for the
lenders and a weakness in ratio may create problem
for the business in raising funds from money lenders
and financial institutions.
Use our free coverage ratio
calculator to calculate interest coverage or
debt service ratio.
How to Use Coverage Ratio Calculator:
-
Enter in operating income.
-
Enter in total debt service.
-
Press calculate button.
-
Wait for the result. Our free
coverage ratio calculator will calculate
interest coverage ratio for you .
|
