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what is ideal interested coverage ratio

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what is ideal interested coverage ratio
  • 2 answers

Nikita Lohiya 6 years, 10 months ago

He asking about ideal ratio which is Generally, an interest coverage ratio of at least 2 is considered the minimum acceptable amount for a company that has solid, consistent revenues. Analysts prefer to see a coverage ratio of 3 or better.

Mayank Tripathi 6 years, 10 months ago

Interest coverage ratio means earning before interest and tax upon interest Higher ICR company have more borrowed fund whereas lower ICR means Company have less borrowed fund
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