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प्रश्न
From the following information, calculate the Interest Coverage Ratio:
| Particulars | ₹ |
|---|---|
| Profit after Tax | 6,30,000 |
| Tax Rate | 30% |
| 15% Debentures | 20,00,000 |
| Equity Share Capital | 10,00,000 |
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उत्तर
Calculation of Interest Expense:
\[\text{Interest on 15\% Debentures} = ₹ 20,00,000 \times \frac{15}{100}\]
$${\text{Interest Expense} = ₹ 3,00,000}$$
Calculation of Profit before Tax:
$$\text{Profit before Tax} = \frac{\text{Profit after Tax}}{1 - \text{Tax Rate}}$$
$$\text{Profit before Tax} = \frac{6,30,000}{1 - 0.30} = \frac{6,30,000}{0.70}$$
$${\text{Profit before Tax} = ₹ 9,00,000}$$
Calculation of Net Profit before Interest and Tax:
$$ = \text{Profit before Tax} + \text{Interest Expense}$$
$$ = ₹ 9,00,000 + ₹ 3,00,000$$
$${\text{Net Profit before Interest and Tax} = ₹ 12,00,000}$$
Calculation of Interest Coverage Ratio:
$$\text{Interest Coverage Ratio} = \frac{\text{Net Profit before Interest and Tax (EBIT)}}{\text{Interest Expense}}$$
$$\text{Interest Coverage Ratio} = \frac{12,00,000}{3,00,000} = 4$$
Interest Coverage Ratio = 4 Times
