Interest coverage ratio, or ICR, is used to evaluate a company’s ability to pay the interest it owes on its debts. There is no generally agreed upon standard for what makes a healthy ICR across all ...

ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...

We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass ...

U.S. equities surged to fresh record highs as renewed optimism over trade negotiations between Washington and Beijing lifted investor sentiment. The Dow Jones Industrial Average climbed 337.47 points, ...

An ill-informed investor can lose cash if he wagers on a stock only based on the numbers flashing on a real-time stock screen. A critical analysis of a company’s financial background is a must for a ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

We often judge a company on the basis of its sales and earnings. These, however, may not be enough. Sometimes, a stock gets a boost if these numbers climb year over year or surpass estimates in a ...