Int coverage ratio
Divya Priya (student) (333 Points)
20 October 2020How to calculate and How it affect company's financial position?
Divya Priya (student) (333 Points)
20 October 2020
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 20 October 2020
Interest coverage ratios is profitability ratio used to determine , how easy can company can pay interest on its outstanding Debts .
Formula to calculate ratio
Interest Coverage ratio = EBDT / Interest Expense
EBDT = Earning Before Interest and Taxes .