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Investments glossary

EBITDA-To-Interest Coverage Ratio

The EBITDA-to-interest coverage ratio is a financial ratio that is used to assess a company’s financial durability by examining whether it is at least profitable enough to pay off its interest expenses using its pre-tax income. Specifically it looks to see what proportion of earnings before interest, taxes, depreciation, and amortization (i.e., EBITDA), can be used for this purpose.

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