What does an interest coverage ratio of 1.8 × mean?

What will be an ideal response?

If a company has a pretax interest ratio that is "1.8×," it means it does not need to borrow or use cash flow or proceeds from the sale of assets to meet its interest payments. It has a cushion of safety since a company with a pretax interest ratio that is equal to 1× would have just enough so that it would not have to borrow or use cash flow or proceeds from the sale of assets to meet its interest payments. Although a precise interpretation must take into account a norm or standard (such as the industry average), the general understanding is that a company must consistently maintain a ratio greater than one to avoid financial distress that could eventually lead to default.