Indian companies’ balance sheets are gradually improving. The interest coverage ratio for 2,500 listed companies was stable in the first two
quarters of this financial year and this largely corroborates with data from rating agencies, suggesting that upgrades are finally outpacing downgrades after three years. The interest coverage ratio determines how easily a company can pay interest on outstanding debt. The lower the ratio, the more the company is burdened by debt expense. When the interest coverage ratio is 1.5 or less, a company’s ability to meet interest expenses could be questionable.
Read Next
‘We can’t match that’: Employee quits job in 2 weeks for higher pay and remote work, says ‘boss started lecturing me about…’
‘Leave denied, resigned immediately’: Employee walks out of US-based startup, says he was later ‘asked to stay’
Axis My India Bihar Election Prediction Out: BJP losing ground, RJD emerges as biggest gainer