The ratio that indicates if a borrowing company will be able to meet its required interest payments is the

Question

The ratio that indicates if a borrowing company will be able to meet its required interest payments is the
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Solution 1

The ratio that indicates if a borrowing company will be able to meet its required interest payments is the "Interest Coverage Ratio" or "Times Interest Earned Ratio".

Here are the steps to calculate it:

  1. Identify the Earnings Before Interest and Taxes (EBIT) from the company's income statement. Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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