What is the importance of the term Interest Coverage Ratio of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give a loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to gi

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Q: (IAS/2020)
What is the importance of the term “Interest Coverage Ratio” of a firm in India?
1. It helps in understanding the present risk of a firm that a bank is going to give a loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give a loan to.
3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.

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question_subject: 

Economics

question_exam: 

IAS

stats: 

0,196,110,196,35,31,44

keywords: 

{'interest coverage ratio': [0, 0, 0, 1], 'borrowing firm': [0, 0, 0, 1], 'loan': [1, 0, 1, 6], 'debt': [0, 0, 0, 1], 'firm': [0, 0, 0, 3], 'bank': [0, 1, 0, 1], 'risk': [1, 1, 2, 4], 'india': [8, 1, 7, 13], 'present risk': [0, 0, 0, 1]}