Question
From the following details, calculate interest coverage
ratio: Net Profit after tax Rs. 60,000; 15% Long-term debt 10,00,000; and Tax rate= 40%Solution
Net Profit after Tax = Rs. 60,000 Tax Rate = 40% Net Profit before tax = Net profit after tax × 100/(100 – Tax rate) = Rs. 60,000 × 100/(100 – 40) = Rs. 1,00,000 Interest on Long-term Debt = 15% of Rs. 10,00,000 = Rs. 1,50,000 Net profit before interest and tax = Net profit before tax + Interest = Rs. 1,00,000 + Rs. 1,50,000 = Rs. 2,50,000 Interest Coverage Ratio = Net Profit before Interest and Tax/Interest on long-term debt = Rs. 2,50,000/Rs. 1,50,000 = 1.67 times.
What was the theme of the "Defence Datathon" competition held at the College of Defence Management?
Who became the first Indian to be appointed CEO of Procter & Gamble (P&G) in 2025?Â
Who became the youngest Indian to complete the Seven Summits challenge in 2025?
The premium amount for the Pradhan Mantri Suraksha Bima Yojana (PMSBY) is auto-debited from the insured person's bank account on or before:
What milestone has Deepika Sehrawat achieved in international women’s hockey?Â
What was the primary reason for Microsoft closing its office in Pakistan after 25 years?Â
Why is the India-EU Trade and Technology Council significant in bilateral relations?
Who was appointed as the new MD & CEO of IndusInd Bank in August 2025?
Which Indian Navy ship conducted joint surveillance with Mauritius in June 2025?Â
What is the focus of the Credit Guarantee Scheme for e-NWR-based Pledge Financing?