Interest Coverage Ratio and proprietary ratio comes under:
solvency ratio
The correct answer is solvency ratio. Interest coverage ratio and proprietary ratio are both related to the financial solvency of the company, which reflects its ability to meet long-term obligations.
Important Questions from Ratio analysis
Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Which of the following ratio is also termed as leverage ratio?
Which of the following formulae is INCORRECT?
Consider the below mentioned statements and state the correct code of the statements being true or false.
Statement (I): A debt-equity ratio of 2 : 1 indicates that for every 1 unit of equity, the company has raised 2 units of debt.
Statement (II): The cost of floating an equity issue is lesser than the cost of floating a debt
Code:
Debt Service Coverage Ratio indicates which one of the following?
