indenture (plural indentures) (law) A contract which binds a person to work for another, under specified conditions, for a specified time (often as an apprentice). (law) A document, written as duplicates separated by indentations, specifying such a contract. An indentation. (Can we add an example for this sense?) Translations
What it is: Interest expense is the cost of money. Interest expense is recorded on the income statement. Let's assume you need $500,000 to buy a house. The price of borrowing that money is interest, and it is expressed as a percentage of the amount of money you obtain.
EBIT to Interest Expense. Definition. EBIT to Interest Expense is a measurement of how much a company is earning (EBIT) over its interest payments. A ratio of five means that a company is making five times its interest payment expense. Companies may have quarters where its EBIT coverage is not significantly higher (or lower) than its interest expense, however, reserve cash can help cover during non-profitable periods.