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Interest coverage ratio is nothing but to determine how effectively a company repay its debt along with the interest charges. We, at myhomeworkhelp.com are constantly working on to provide the best interest coverage ratio homework help.
How to make good investment decision?
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Why do we need to know about interest coverage ratio?
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Are you interested in knowing about the formula of the interest coverage ratio?
I know it is an interesting concept in Economics. As soon a s you start getting interest, your inner craving to know more about it will accentuate.
Interest coverage ratio will be equal to (EBIT) that is, the earnings you make before paying taxes and interest to be divided by all the interest expenses.
Basically it means the interest from the earnings could be paid for how many times.
It also tries to gauge the safety margin of a firm for paying its interest.
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