Corporate Risk

Interest Coverage Ratio

Measure how easily your company can pay interest on its outstanding debt. A ratio under 1.5 indicates potential solvency issues.

Income Statement Inputs

Operating Income (EBIT) (₹)

Earnings Before Interest and Taxes.

Total Interest Expense (₹)

Interest paid on all outstanding debt.

Solvency Metric

Coverage Ratio

5.00x

Safe (Strong earnings)

Detailed guide and formula

Compare with alternatives

Key terms and questions

Tax rules and deductions