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Glossary   >   I   >   "Interest coverage ratio" Definition            Interest coverage ratio The ratio of the earnings before interest and taxes to the annual interest expense. This ratio measures a firms ability to pay interest. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Interest coverage ratio - The ratio of the earnings before interest and taxes to the annual interest expense. This ratio measures a firms ability to pay interest.