Interest coverage
AccountingOperating profit divided by interest expense.
In plain terms
Debt-to-equity says how much is borrowed; this says whether the company can actually afford it.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Fundamental analysisFailure to meet a debt obligation when it falls due.
In plain terms
Rating outlook, interest coverage and promoter pledging warn well in advance.