Which is the most commonly computed coverage ratio?
A) debt ratio
B) interest coverage ratio
C) return on common equity
D) net profit margin

Name: Which is the most commonly computed coverage ratio? A) debt ratio B) interest coverage ratio C) return on common equity D) net profit margin
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Question

Quizplus · Accepted Answer

The interest coverage ratio is the most commonly computed coverage ratio because it measures a company's ability to pay interest on its debt, which is crucial for assessing its financial health and stability.

Which Is the Most Commonly Computed Coverage Ratio