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Glossary
Risk & Ownership

Interest Coverage

How easily operating profit covers interest

Definition

EBIT (or a close FMP equivalent) divided by interest expense. FMP can report 0.0 when interest is negligible or the ratio is unusable. BullBrief still shows that zero rather than hiding it.

EBIT ÷ interest expense

Example

Coverage of 12x means operating profit is twelve times interest.

See it in a Brief

Educational only. Not investment advice.

BullBrief is educational research software only. It is not investment advice, a recommendation, a broker-dealer, or a registered investment adviser.