Sunday, June 15, 2025
HomeNewsBusiness & FinanceHow to Calculate the Interest Coverage Ratio TechTricks365

How to Calculate the Interest Coverage Ratio TechTricks365


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.


RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments