Commonly referred to as the Interest Coverage Ratio, the calculation measures the ability of the company to cover its interest expense from its earnings before interest and taxes. 

Generally, ratios greater than 1:1 (pronounced as 1 to 1) are desirable as ratios below 1 indicate that the company's earnings before interest and taxes are not sufficient to pay interest expense. Beyond this, larger ratios indicate a greater ability for the company to cover its interest payments. 

Formula: 

( Net Profit + Income Tax + Interest Expense ) / Interest Expense

This calculation is available within the CASH|Suite Insight Application to assess financial capacity and risk.