Search This Blog

Saturday, July 18, 2009

Interest coverage ratio

o Interest coverage ratio.

Ratio measures the debt servicing capacity of a firm insofar as fixed interest on long-term loan is concerned. It can be calculated on the basis of the dividing the operating profits or earnings before interest and taxes(EBIT) by the fixed interest charges on loans.





No comments:

Post a Comment

Hit Counter by Digits Get your Google PageRank