Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain why a higher interest coverage ratio can a

Explain why a higher interest coverage ratio can also be a sign of weak financial management. And...

90.2K

Verified Solution

Question

Finance

Explain why a higher interest coverage ratio can also be a sign ofweak financial management.
And reason that will lead to an increase in gross profitmargin

Answer & Explanation Solved by verified expert
3.6 Ratings (409 Votes)
Interest Coverage Ratio is used to determine the capacity of acompany to pay interest on its outstanding DebtIt is calculated by Its shows that how many time a Company can meet out the interestLiability out of its EarningsIdeally the ICR should be 2 but if it is    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

me Left 0 09 14 It is time for Roger Hall manager of new car...

Statistics
Q

Calculate the value of ΔG°, ΔH°, & ΔS° for the formation of phosphorous trichloride from its constituent...

Chemistry
Q

Be able to determine the possible genotypes based on a person’s phenotype. (For example: Suppose a...

Biology
Q

Several haploid strains of Saccharomyces cerevisiae grow well on YPD but do not grow on minimal...

Biology
Q

Quest Quality Sportswear (QQS) is an athletic wear company, which manufactures boys, girls, men, and women's...

Accounting
Q

Use the figure to help you answer the question 2 E Select one O a...

Geometry
Q

6 Consider the parametric curve given the equations r t t 23t 1 and y...

Basic Math
Q

27 boxes of coconut creams for$14.95 each36 boxes of pralines for $11.39each14 boxes of raspberry...

Basic Math
Q

How would you differentiate between the legislative approach of Quebec and the rest of the...

Accounting
Q

PLEASE ANSWER THESE QUESTIONS DONT COPY FROM INTERNET SOURCE PLEASE IT SHOWS PLAG ...

Accounting
Q

Calculation gross margin % is considered a ...... O a horizontal analysis O a vertical...

Accounting
Q

Lokalalo Productions utiliza la contabilidad de acumulacin. Cul de los siguientes eventos que ocurrieron durante...

Accounting