The interest coverage ratio measures the company's ability to make interest payments, such as in its debt service.A ratio above one indicates that the company is able to pay its interest, while a ratio below one means that its interest payments exceed its earnings. Apple Inc. balance sheet, income statement, cash flow, earnings & estimates, ratio and margins. Dow Jones, ... Interest Coverage 17.69: Current and historical debt to equity ratio values for Apple (AAPL) over the last 10 years. View AAPL financial statements in full. Interest coverage ratio merefleksikan berapa kali biaya bunga (interest expense) yang ditutupi oleh laba atau arus kas (cash flow).. Rasio ini menunjukkan besarnya penurunan laba yang masih dapat ditoleransi perusahaan dan masih mampu memenuhi pembayaran bunganya. The debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its long-term debt by stockholders' equity. The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments. At the end of 2Q17, SWK’s interest coverage ratio stood at 8.74x. Interest coverage ratio is equal to earnings before interest and taxes (EBIT) for a time period, often one year, divided by interest expenses for the same time period. A ratio of a company's EBIT to its total expenses from interest payments. Interest expense refers to the amount of interest … EBIT is also referred to as operating income, which is revenues minus operating expenses. Interest Coverage Ratio Formula Variables. Definition. When the ratio is equal to 1.0, it means that the company is generating only enough earnings to cover the interest payment of the company for 1 year. The variable EBIT in the interest coverage ratio formula stands for earnings before interest and taxes.

EBIT To Interest Coverage Ratio = EBIT / Interest Payments However, EBITDA is typically seen as a better proxy for the operating cash flow of a company. Apple debt/equity for the three months ending March 31, 2020 was 1.14 .