Accountancy, asked by pritiattri2612, 1 month ago

interest coverage ratio does not tell us much about the debt servicing ability of a firm” — Comment.​

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Answered by looterax
5

Answer:

What Is the Interest Coverage Ratio?

The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The interest coverage ratio may be calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense during a given period by the company's interest payments due within the same period.

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