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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

3 points Which of the following is NOT a source of nitrogen and phosphorous to...

Biology
Q

Develop a matlab script file to calculate the practical single phase transformer parameters. The program should...

Electrical Engineering
Q

As shown in the figure ammeter reading is 3 amp and power factor of circuit...

Physics
Q

The Business Entity Concept means A business is an important legal entityBusinesses can be stand...

Basic Math
Q

Need balance sheet completed Cycle Project Directions - Word Mailings...

Accounting
Q

Assume the following excerpts from a companys balance sheet: Beginning BalanceEnding BalanceBonds payable$...

Accounting
Q

[The following information applies to the questions displayed below) The partnership of Ace, Jack, and...

Accounting
Q

The present value of a cash flow-1 decreases as it moves further into *.the future...

Accounting
Q

Required information (The following information applies to the questions displayed below.) Sun Corporation received a...

Accounting
Q

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services...

Accounting
Q

Your boss has asked you to determine the risk (standard deviation) of a particular stock....

Finance
Q

Global Company Data Year Ticker 1 Key Data Date Fiscal Symbol 2 116104 20180131 2017...

Accounting