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Interest cover ratio

Updated: 9/26/2023
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Continue Learning about Math & Arithmetic

Who is attributed with the discovery of the golden ratio?

Nobody has been identified.The Golden ratio has fascinated people in ancient cultures for centuries. It has been of interest, not just to mathematicians, but also to biologists, musicians, architects, artists, and other disciplines.


What is the ratio of interest on loan from banks?

It depends, among other factors, onthe country and expectations about inflation,the degree of competition between banks,the borrowers' creditworthiness.


How do you calculate liquidity ratio?

You have to calculate the Quick ratio and the Current RatioQuick ratio: (cash+accounts receivables+short-term investments)/current liabilitiesCurrent ratio: Current Assets/Current liabilitiesWhoever submitted this did not answer the question fully. I don't know the answer but I see nothing here that says "Liquidity ratio =" or means the same thing. I have no idea what to do with quick ratio and current ratio....================================================================What Does Liquidity Ratios Mean?A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts.Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow ratio. Different analysts consider different assets to be relevant in calculating liquidity. Some analysts will calculate only the sum of cash and equivalents divided by current liabilities because they feel that they are the most liquid assets, and would be the most likely to be used to cover short-term debts in an emergency.A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.From Investopedia.


What is the example of the times interest earned?

2-3 Wolken Corporation has $500000 of debt outstanding, and it pays an interest rate of 10 percent annually. Wolken's annual sales are $2 million, its average tax rate is 20 percent, and its net profit margin is 5 percent. If the company does not maintain a TIE ratio of at least 5, its bank will refuse to renew ...the loan what is wolkens tie ratio


Can pi be expressed as a ratio of two integers?

No, because pi is not a rational number. A popular approximation is 22/7 = 3.14(2857....), correct to 2 decimal places. Of particular interest is another ratio: 355/113 = 3.141592(9204...) which is correct to 6 dp. This is a rare example where remembering the 6 digits of the ratio gives pi to as many dp. Not only that, the sequence of digits, going from the denominator to the numerator make it quite an easy ratio to remember.

Related questions

What is a spread ratio?

Spread Ratio: Interest Earned / Interest Expense


What is spread ratio?

Spread Ratio: Interest Earned / Interest Expense


What is the difference between interest coverage ratio and debt coverage ratio?

Interest coverage ratio, is net operating income + accrual/ interest That is whether the company can cater for the interest portion.


What is interest coverage ratio?

This ratio is used to determine how easily a company can repay the interest outstanding on its debt commitments. The lower the ratio, the more the company is burdened by debt commitments. When a company's interest coverage ratio is 1.5 or lower, its ability to meet its interest expenses becomes questionable. An interest coverage ratio of < 1 indicates that the company is not generating sufficient revenue to satisfy its interest expenses. Formula:ICR = EBIT / Interest ExpensesEBIT - Earnings Before Interest and Taxes


What is Cash flow to Fixed-Charge Ratio?

cash generate from normal course of business that able to cover the fixed charge such as lease and interest expense


What is the formula for times interest earned ratio?

Times Interest Earned = Operating Income/ Interest Expense.


What are points of interest in Italy?

The ratio bridge


What is cash coverage ratio?

The cash coverage ratio is useful for determining the amount of cash available to pay for interest, and is expressed as a ratio of the cash available to the amount of interest to be paid.To calculate the cash coverage ratio, take the earnings before interest and taxes (EBIT) from the income statement, add back to it all non-cash expenses included in EBIT (such as depreciation and amortization), and divide by the interest expense. The formula is: Earnings Before Interest and Taxes + Non-Cash Expenses Interest Expense.


What is the formula for calculating interest coverage ratio?

operating income vefore interest and income taxes / annual interest expense


How do you find the earnings before interest?

Earnings before Interest and Taxes / Interest Expense-indicates how comfortably the company can handle its interest payments. In general, a higher interest coverage ratio means that the small business is able to take on additional debt. This ratio is closely examined by bankers and other creditors.


What is meant by the interest coverage ratio?

The interest coverage ratio is the calculation that determines a company's ability to repay debt payments. It is this calculation that determines whether or not companies are able to obtain loans.


What is cover factor?

The cover factor is the ratio of the area covered by the yarn to the whole area of the fabric .