Finance & Accounting / Treasury
Interest Coverage / Times Interest Earned TIE / ICR
How many times over a company's operating earnings could cover its interest bill, a first-line test of whether it can service its debt.
The fork, why two teams get different numbers
The numerator is the battleground.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: Credit rating agency methodologies (Moody's · S&P Global) · loan covenant conventions · FASB ASC 842 (Leases)