Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -

How is interest coverage ratio calculated?

The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total amount of interest expense on all of the company’s outstanding debts.

Further Readings – 

  1. What Do You Mean By Line of Credit?
  2. Non Performing Assets (NPA)
  3. Types of Bonds
Related Links
UPSC Syllabus Syllabus and Strategy for UPSC Economy
NCERT Notes for UPSC UPSC Mains General Studies Paper-3 Strategy, Syllabus & Structure
Previous Year UPSC Question Papers UPSC Mains Economy Questions

 

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*