Home › Bihar Board Class 12 (Commerce) › Accountancy › Analysis of Financial Statements: Tools and Accounting Ratios › A higher interest coverage ratio indicates what?
A higher interest coverage ratio indicates what?
ALarger closing inventory
BA higher tax liability
CLower revenue growth
DSafer interest payments
Answer & Solution
Correct answer: D. Safer interest payments
More cover means profits comfortably exceed the interest burden.
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