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How does ‘interest coverage ratio’ affect the capital structure of a company?

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Question ajoutée par Utilisateur supprimé
Date de publication: 2013/08/26
Gaurav Kumar
par Gaurav Kumar , Senior Management Trainee , Raymond Ltd.

A poor Intereset coverage ratio indicates that the company does not have funds to repay debt obligations that means the company has excess debt and debt is the part of capital employed. So to improve the interest coverage ratio one needs to decrease the dept or increase the productivity. decreasing the debt will certainly alter the capital structure.

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