What is the meaning of Interest coverage test?

Interest coverage test is a debt limitation that prohibits the issuance of additional long-term debt if the issuer's interest coverage would, as a result of the issue, fall below some specified minimum.

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APABarry Goldsmith. (2010). interest coverage test. Retrieved September 22, 2026, from http://smartdefine.org/interest_coverage_test/definitions/1156241
ChicagoBarry Goldsmith. 2010. "interest coverage test" http://smartdefine.org/interest_coverage_test/definitions/1156241 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, interest coverage test, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/interest_coverage_test/definitions/1156241>.
MLABarry Goldsmith. "interest coverage test" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/interest_coverage_test/definitions/1156241>