Which financial ratio measures a company's ability to cover its interest expenses?
کون سا مالی تناسب کسی کمپنی کے اپنے سود کے اخراجات کو پورا کرنے کی صلاحیت کو ماپتا ہے؟
Answer: Interest coverage ratio
Explanation
Interest coverage ratio = EBIT ÷ Interest Expense.
It shows how easily a company can pay interest on outstanding debt.
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