What is another word for interest coverage test?

Pronunciation: [ˈɪntɹəst kˈʌvəɹɪd͡ʒ tˈɛst] (IPA)

Interest coverage test is a financial health indicator that measures a company's ability to pay interest expenses of outstanding debt with the company's earnings before interest and taxes (EBIT). Some synonyms for interest coverage test include debt service coverage ratio, interest coverage ratio, and debt coverage ratio. These ratios are often used by lenders and investors to evaluate the creditworthiness of a borrower or a company's financial stability. A good interest coverage ratio ensures that a company can comfortably pay off its interest obligations and have funds leftover for operational expenses and investments. Synonyms for interest coverage test may vary, but they all serve the same purpose of assessing a company's financial strength.

What are the hypernyms for Interest coverage test?

A hypernym is a word with a broad meaning that encompasses more specific words called hyponyms.
  • Other hypernyms:

    credit analysis, Financial evaluation, financial analysis.

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