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What is interest coverage ratio?
This ratio is used to determine how easily a company can repay the interest outstanding on its debt commitments. The lower the ratio, the more the company is burdened by debt commitments. When a company's interest coverage ratio is 1.5 or lower, its ability to meet its interest expenses becomes questionable. An interest coverage ratio of < 1 indicates that the company is not generating sufficient revenue to satisfy its interest expenses. Formula:ICR = EBIT / Interest ExpensesEBIT - Earnings Before Interest and Taxes
What practices by a credit card company results in lower interest charges to the cardholder?
The card company allows a grace period before interest is accrued.
What is interest payable?
Interest payable is the interest the company pays on any loans, leases, hire purchases, debentures, etc. throughout the year.
The times interest earned ratio is calculated by dividing Bonds Payable by Interest Expense?
The times interest earned (TIE) ratio is actually calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense, not by dividing bonds payable by interest expense. This ratio measures a company's ability to meet its interest obligations, indicating how many times it can cover its interest payments with its earnings. A higher TIE ratio suggests greater financial stability and a lower risk of default.
Does an increase in interest payable increase or decrease cash flow?
Increase in interest payable increases the cash flow of company as payment is not cleared when due and which causes temporary increase in company's cash flow
Micro Fish Company recognized 10000 of interest expense in 2007 The balance of the company's interest payable account decreased 2000 The amount of cash paid by the company for interest in 2007?
Company has paid 2000 cash for interest due to which interest payable reduced by 2000.
Who is the major shareholder of target?
Capital Research and Management Company...with a huge 14% interest in the company Capital Research and Management Company...with a huge 14% interest in the company
How is interest coverage used?
Interest coverages is basically a person or company's ability to pay back a loan and the interest on it. Interest coverage is used to see if a person or company is a good risk for a loan.
How does an investor get ownership interest in a company?
by purchasing shares in the company
What is interest coverage ratio?
This ratio is used to determine how easily a company can repay the interest outstanding on its debt commitments. The lower the ratio, the more the company is burdened by debt commitments. When a company's interest coverage ratio is 1.5 or lower, its ability to meet its interest expenses becomes questionable. An interest coverage ratio of < 1 indicates that the company is not generating sufficient revenue to satisfy its interest expenses. Formula:ICR = EBIT / Interest ExpensesEBIT - Earnings Before Interest and Taxes
How do you answer the questions what interest you in a company?
well
How Interest Rates can Affect a company?
interest rates reflect the funding cost. for the the company the higher the rates the higher the borrowing cost.
What you can expect from company?
IF you mean from a company, then self interest is its sole objective.
Is a higher or lower times interest earned ratio better for a company's financial health?
A higher times interest earned ratio is better for a company's financial health. It indicates that the company is more capable of meeting its interest obligations with its earnings.
If you own a 60 percent interest in a company what is that considered?
A controlling interest or majority shareholder.
A company's fixed interest expense is 8000 its income before interest expense and income taxes is 32000 Its net income is 9600 The company's times interest earned ratio is?
Formula for times interest earned = earning before interest and tax / interest expense Times interest earned = 32000 / 8000 = 4 times
What practices by a credit card company results in lower interest charges to the cardholder?
The card company allows a grace period before interest is accrued.
