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Int coverage ratio

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prasad  Nilugal

prasad Nilugal (Sr . Accountant and GST Practitioner . )     20 October 2020

Interest  coverage ratios is profitability  ratio used to determine , how easy can  company can pay interest  on its  outstanding  Debts .

Formula  to calculate  ratio 

Interest  Coverage ratio  =  EBDT   /  Interest  Expense 

EBDT = Earning Before Interest and Taxes . 



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