Interest Cover measures how many times a business could pay its Interest on the borrowed capital out of its Net Profit Before Interest and TAX.
Posts tagged as “Debt Ratios”
Gearing measures how much of the capital employed in a business is financed by long-term debt, or Long-term Liabilities.
Internal Users and External Users of Final Accounts will find Ratio Analysis of great help when making business decisions.
Different types of ratios are used to analyze information from Profit and Loss Account (P&L Account) and Balance Sheet to judge financial performance.
All business organizations need accounting systems. This makes finance one of four core business functions.