a coverage ratio that’s acceptable in one industry may be considered risky in another field. If a business you’re evaluating seems out of step with major competitors, it’s often a red flag.

In the world of finance, the Interest Coverage Ratio is a critical measure used by investors and lenders to assess a company’s ability to meet its debt obligations. This vital financial metric ...

The liquidity coverage ratio requires banks to hold enough high-quality liquid assets (HQLA) – such as short-term government debt – that can be sold to fund banks during a 30-day stress scenario ...

A measure of a firm's ability to meet its fixed-charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions ...

The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the average interest expense. A retail company may be charged an interest expense for the rent or ...