Interest Cover Ratio.
It is the relationship of Income cover over the Interest cost of an asset, ie an asset with $10m pa of net income and a valuation(or cost) of $100 m and debt of 50% at 8.5% interest rate, you have interest cost of $4.25 m pa and income of $10m, you have $10m/$4.25m which gives you an Interest Cover Ratio (ICR) of 2.35 times
Interest Cover Ratio.It is the relationship of Income cover over...
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