The Traderszone Network

Published in TZ Latest News 21 May, 2016 by The TZ Newswire Staff

How to Calculate the Interest Rate From an Income Statement

You can find information about a company’s debt and how much interest it pays to service its debt, but the actual interest rate it pays is generally not included in its financial statements. And while many companies carry different types of debt (long-term, short-term, etc.) with different interest rates, it’s possible to calculate a company’s overall interest rate from information found on its income statement and balance sheet.

To calculate an interest rate, you’ll need a few pieces of information:

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