Interest expense
Borrowing cost recognized as expense.
Worked example · a round-number company
Interest expense$1.0B÷Revenue$5.0B=Share of revenue20.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%How to read it
↕Neither higher nor lower is better. Shows part of the cost of financing debt.
Keep in mind
- Interest is an operating input for banks; capitalized interest may not appear here.