ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...
We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass ...
An interest coverage ratio lower than 1 suggests that the company is unable to fulfill its interest obligations and could default on repaying debt. A company capable of generating earnings well above ...
We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Learn how senior notes work as secure bond investments, their priority in bankruptcy, and the benefits and risks involved for investors.