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good afternoon everyone this is Christian with perfect ocular comm a 100% free service for smart investors and traders all we ask in return please refer a friend today we look at the definition of interest expense as I do in each one of these fundamental analysis tutorial videos audio the actual definition then will go on to look at some examples and give you a little more insight a companys interest expense tells an investor how much of the companys cash flow is going to pay the interest on its debt a companys interest expense can be found on the companys income statement now lets have a look at an example the companys interest expense can be found on the income statement for this example we looking at McDonalds Corporation and looking at the annual data on this income statement what you want to do is roll down to about a halfway point on the income statement and then not every income say exactly laid out the exactly the same but it would be close so lets go ahead and scroll