Which of the following is a measure of debt service capacity of a firm?

Current Ratio

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Acid Test Ratio

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Interest Coverage Ratio

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Debtors Turnover

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Interest Coverage Ratio
The interest coverage ratio is used to determine how easily a company can pay their interest expenses on outstanding debt.

Suggest Corrections

Similar questions

Debt Service Coverage Ratio is EBIT-Tax+depreciation divided by Interest + Principal + Dividends. State true or false.

Join BYJU'S Learning Program