I learned today the term fight fire with fire comes from the early day of fire fighting when departments would just bulldoze buildings and then burn them in an attempt to stop a fire from spreading. So to stop fire from burning shit they would burn down other buildings in a more violent and destructive way thus lowering the fires moral so much it refuses to spread and work.
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Simple English definitions for legal terms
interest-coverage ratio
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A quick definition of interest-coverage ratio:
Interest-Coverage Ratio: The interest-coverage ratio is a way to measure how much money a company makes compared to how much it owes in interest payments. It is calculated by dividing a company's pretax earnings by the amount of interest it pays on its loans and bonds each year. This ratio helps investors and lenders understand how easily a company can pay its debts and whether it is a good investment or not.
A more thorough explanation:
The interest-coverage ratio is a financial metric that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
For example, if a company has an EBIT of $1 million and pays $200,000 in annual interest expenses, its interest-coverage ratio would be 5x ($1 million / $200,000).
A higher interest-coverage ratio indicates that a company is more capable of meeting its interest obligations and is therefore considered less risky by lenders and investors. Conversely, a lower interest-coverage ratio suggests that a company may struggle to make its interest payments and could be at risk of defaulting on its debt.
Overall, the interest-coverage ratio is an important measure of a company's financial health and is closely monitored by analysts and investors.