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Fundamental Analysis

What is interest coverage ratio? Interest Coverage Ratio

KGWV Investment Encyclopedia · Updated 2024-12-16

Interest Coverage Ratio, or ICR in English, is one of the most important company financial indicators. It measures the company's ability to pay debt interest by calculating the ratio of the company's income to the interest required to pay on outstanding debt. It has certain reference significance for both internal and external companies. So, how is the interest coverage ratio calculated? How to use it specifically?

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