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प्रश्न
From the following details obtained from the financial statements of Jeev Ltd. Calculate interest coverage ratio
Net Profit after tax 1, 20,000
12% Long term Debt 20, 00,000
Tax Rate 40%
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उत्तर
`"Interest Coverage Ratio =""Profit before Interest and Tax"/"Interest on Long - term Debt"`
Net Profit after Tax = 1, 20,000
Tax Rate: 40 %
Now,
If Profit after tax is 60, Profit before Tax must be 100 And if profit after tax is 1,20,000; profit before tax would be
`100/60xx120000=200000`
12% Long –term Debt 20, 00,000
Interest on Long-term debt 12% of 20, 00,000 i.e. 2, 40,000
Accordingly, Profit before Interest and Tax would be 2, 00,000 plus Interest
`rArr(200000+240000)=440000therefore"Interest Coverage Ratio="440000/240000=1.83"times"`
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संबंधित प्रश्न
From the following details obtained from the financial statements of JN Ltd. calculate 'interest coverage ratio'. Net profit after tax Rs.2, 00,000; 12% Long-Term Debt Rs.40, 00,000; Rate of tax 40%.
According to the ratings agency Chrisil, healthy demand for grocery items and expansion into tier II and III cities will help organized brick-and-mortar food and grocery (F&G) retailers log a revenue of 14-15% in FY25. The agency further said the debt raising will be capped to ensure healthy key debt protection metrics.
From the following ratios:
- Choose the formula of the ratio to be used by the F&G retailers as a debt protection metrics
- Mention the name of the ratio so chosen
Calculate Interest Coverage Ratio of Criss Cross Ltd. (up-to two decimal places) from the following information:
| Particulars | (₹) |
| Net Profit after Interest and Tax | ₹ 80,000 |
| Tax Rate | 50% |
| 12% Debentures | ₹ 3,00,000 |
| 9% Bank Loan | ₹ 1,00,000 |
