Why an Interest Coverage Ratio of 3 is preferable over 2 for equity investors? Why an Interest Coverage Ratio of 3 is preferable over 2 for equity investors? Equity investors generally prefer a higher interest coverage ratio, as it indicates a company's ability to comfortably meet its interest payment obligations. A ratio of 3 is often seen as more favorable than a ratio of 2. DSIJ Intelligence / Thursday, February 6, 2025 / Article rating: 5.0