Interest Cover Improves: Care Ratings

Interest Cover Improves: Care Ratings

A calculator sits on the desk (Photographer Luke Sharrett/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Care Ratings Research Report

Interest cover and its trend is a good indicator of the present as well as future debt servicing capability. As it is a ratio of profits to interest costs it indicates the ability of the firm or industry to service this part of debt.

A falling ratio raises the flag of possible pressure and hence becomes a useful signal to lenders.

It would also be a good gauge of the non-performing asset build-up and is hence also a quick indicator of the same.

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Care Ratings Interest Cover Improves.pdf
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