interest coverage ratio

How to Calculate the Interest Coverage Ratio

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How to Calculate the Interest Coverage Ratio

Why the Interest Coverage Ratio Matters A high ICR suggests that a company is generating enough earnings to comfortably meet its interest obligations, indicating strong financial health and lower risk of default. A low ICR can signal financial strain, as the company may struggle to pay interest, potentially leading to higher financial risk. Source link

Indian firms exhibit viable debt servicing capacity despite rise in borrowing cost: RBI

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Indian firms exhibit viable debt servicing capacity despite rise in borrowing cost: RBI

Indian companies except the ones in the telecom sector exhibited viable debt servicing capacity despite rise in their borrowing cost last year, the Reserve Bank of India said in a report. Debt servicing capacity of manufacturing companies measured by interest coverage ratio (ICR) although moderated to 7.3 in 2022-23 from 8.4 in 2021-22, due to … Read more