SOLUTION
Net Profit before Interest and Tax = 5,00,000
Interest = 1,00,000
Interest Coverage Ratio = Net Profit Interest and Tax / Interest
Interest Coverage Ratio = 5,00,000 / 1,00,000 = 5 Times
SOLUTION
Net Profit before Interest and Tax = 5,00,000
Interest = 1,00,000
Interest Coverage Ratio = Net Profit Interest and Tax / Interest
Interest Coverage Ratio = 5,00,000 / 1,00,000 = 5 Times