A firm with interest coverage of at least 2 is generally preferred. There is no universally accepted optimal interest coverage ratio. However, the interest coverage ratio is also expressed with respect to profit before interest and tax as well. Get here latest School, CBSE and Govt Jobs notification and articles in English and Hindi for…
The ICR is also known as the debt service ratio or debt service coverage ratio. It may be calculated as either EBIT or EBITDA divided by the total interest expense of the company. With the Global Financial crisis, this step will prove to be a huge fail. The WPI basket includes 697 now commodities in…
In other words, the interest coverage ratio measures the number of times a company is able to make payments on its existing debt with the EBIT or earnings before interest and taxes. It is also known as the Times Interest Earned Ratio or TIE ratio. Interest coverage ratio is one of the most important ratios…
Private equity (PE) firms rely on accurate, up-to-date data to make informed decisions and ensure seamless operations. Two important systems that help firms better manage data and information are the Investment Book of Record (IBOR) and the Accounting Book of Record (ABOR). Both refer to large-scale data sources used in investment management, but they have…
Currency hedging aims to manage the risk of fluctuations in foreign exchange rates, which can impact international investments. Bond laddering involves purchasing bonds with staggered maturity dates, which helps to manage reinvestment risk and allows investors to take advantage of changes in interest rates over time. Diversification is an essential aspect of hedging, as it…
Regular options strategies can be employed, such as long straddles, long strangles, and bull or bear spreads, to limit the loss potential of a given trade. The primary methods of hedging currency trades are spot contracts, foreign currency options, and currency futures. Spot contracts are the run-of-the-mill trades made by retail forex traders. Because spot…