Interest coverage ratio

Interest coverage ratio
  The number of times that fixed interest charges were earned. It indicates the margin of safety of interest on fixed debt. The times-interest-earned ratio is calculated using net income before and after income taxes; and the credits of interest charged to construction being treated as other income. The interest charges include interest on long-term debt, interest on debt of associated companies, and other interest expenses.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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