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    Question

    Case: Sales = ₹200 crore EBIT = ₹30

    crore Interest = ₹10 crore Tax = ₹6 crore What is the Interest Coverage Ratio (ICR)?
    A 2.0 Correct Answer Incorrect Answer
    B 2.5 Correct Answer Incorrect Answer
    C 3.0 Correct Answer Incorrect Answer
    D 3.5 Correct Answer Incorrect Answer
    E 4.0 Correct Answer Incorrect Answer

    Solution

    ICR = EBIT / Interest = 30 / 10 = 3.0

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