A company with interest cover of 10 is less safe than a company with interest cover of 2

Name: A company with interest cover of 10 is less safe than a company with interest cover of 2
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The higher the interest cover, the safer the company's financial position, as it means the company is generating more profit to cover its interest payments. Therefore, a company with an interest cover of 10 is safer than a company with an interest cover of 2.

A Company with Interest Cover of 10 Is Less Safe