Interest Coverage Ratio
Interest coverage ratio measures a company’s ability to meet its interest obligations using operating income. It is calculated by dividing earnings before interest and taxes by interest expense. A higher ratio indicates stronger financial stability, while a lower ratio may signal difficulty in servicing debt and increased financial risk.
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Investment Portfolio
An investment portfolio is a collection of financial assets such as stocks, bonds, and other securities held by a business…
Interest Accrual
Interest accrual refers to the recognition of interest expense or income over time, even if it has not yet been…
Income Distribution
Income distribution refers to how profits are allocated among stakeholders, such as shareholders, employees, or reinvestment in the business. It includes dividends,…
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