Liabilities Indicates the average interest rate that a company borrows at.
Things to remember this is a rough estimate, the ratio does not account for everything. using the before tax or after tax interest expense will produce different results. This formula won't give you the exact interest rate they are paying, but it is useful in an interest rate sensitive environment. And if you compare it to previous years then you are able to tell what rate the company had to take on more debt at. If you will notice, Moe's Brewery doesn't have any long term debt - therefore you will not find an interest expense. What a great position to be in, practically debt free.