What is a good interest coverage ratio?
Optimal Interest Coverage Ratio\n\n Analysts prefer to see a coverage ratio of three (3) or better. A coverage ratio below one (1) indicates a company cannot meet its current interest payment obligations and, therefore, is not in good financial health.
Do you want a high or low cash coverage ratio?
What is a good current cash debt coverage ratio? Creditors are uncomfortable with a cash debt coverage ratio well below 1.0. Because a low figure indicates trouble meeting your debt obligations. On the other hand, creditors like values greater than 1.0.
What does an interest coverage ratio of 1.8 mean?
An interest coverage ratio of 1.8 means it is a little risky to lend businesses having such ratios. As Minimum interest coverage ratio is 2 times. c. It is computed on the basis of EBIT (Earnings before Interest and Tax) because interest on the loan is also a tax-deductible expense.
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The Transmission of Monetary Policy through Bank Lending www ecb europa eu/pub/conferences/shared/ pdf /20161027_monetary_policy_pass_through/The_Transmission_of_Monetary_Policy_through_Bank_Lending pdf debt on the interest coverage ratio is more likely to lead to covenant violations of floating rate debt increases the share of cash flows allocated to
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- cash interest coverage ratio interpretation
- what is interest coverage ratio used for
- what is considered a good interest coverage ratio
- what is the cash coverage ratio formula