This final video of the series explains the Interest Coverage Ratio. The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments. 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.
To read more about ratio analysis, click here - https://www.elearnmarkets.com/blog/how-to-analyse-financial-ratios/
To learn more about financial ratio analysis, click here - https://www.elearnmarkets.com/courses/display/ratio-analysis-learning-module