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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%.
उत्तर
Interest Coverage Ratio = Profit before Interest and Tax / Interest on Long - term Debt
Net Profit after tax : 2,00,000
Tax Rate : 40%
Now,
If Profit after tax is 60, profit before tax must be 100 and if profit after tax is 2,00,000, profit before tax would be 12% Long - term Debt 40,00,000
Interest on Long - term debt 12% of 40,00,000, i.e. 4,80,000
Accordingly, Profit before Interest and Tax would be 3,33,333 plus Interest
⇒ (3,33,333 + 4,80,000) = 8,13,333
∴ Interest Coverage Ratio = 8,13,333 / 4,80,000 = 1.69 Times
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संबंधित 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%
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 |
