Feel free to contact us

Interest Coverage Ratio: Formula, Calculation, and Examples

A higher ratio indicates better financial health as it implies that the company can easily meet its interest obligations from operating profit. Borrowing funds can work in a company’s favour if used smartly towards building assets and attaining growth. Since interest payments can have a significant impact on a company’s profitability, it should assess beforehand whether it can handle these payments... Continuar leyendo