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P2 C5 ACCOUNTNG RATIOS AND ANALYSIS — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C5 ACCOUNTNG RATIOS AND ANALYSIS1 Mark
Question
What is indicated by interest coverage ratio?
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Answer

The interest coverage ratio indicates the ability of a company to pay interest on its long-term debts out of its profits before interest and tax.

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