S&P 500 Aggregate Interest Coverage Ratio (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 interest coverage ratio measures aggregate trailing-twelve-month EBIT relative to aggregate interest expense for index constituents. It answers how many times the index could cover its interest obligations from operating profits. A reading of 9x means the index generates $9 of operating income for every $1 of interest expense.

Why it matters

Interest coverage is the most direct measure of debt service capacity — the cushion between operating profit and the fixed cost of debt. A ratio below 3x is typically a warning threshold; below 1.5x, distress territory. At the index level, coverage is highly sensitive to the interest rate environment: as debt matures and is refinanced at higher rates, the same EBIT buys less coverage, gradually compressing the cushion even without operating deterioration. Tracking coverage alongside debt growth and EBIT trends reveals whether tightening is driven by earnings weakness or financing cost creep.

How it is calculated

Interest Coverage (TTM) = Σ TTM EBIT ÷ Σ TTM Interest Expense

LENSE computes the S&P 500 interest coverage ratio as aggregate TTM operating income (EBIT) divided by aggregate TTM interest expense — not a simple average of per-company ratios. Both figures are sourced from as-reported quarterly income statements; TTM figures are constructed by summing the four most recently reported quarters. Constituents with zero or negative interest expense (net interest income companies) are excluded from the denominator. Index constituency is resolved point-in-time using point-in-time index constituency.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.