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Explain why a higher interest coverage ratio can also be a sign of weak financial management. And...

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Finance

Explain why a higher interest coverage ratio can also be a sign ofweak financial management.
And reason that will lead to an increase in gross profitmargin

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3.6 Ratings (409 Votes)
Interest Coverage Ratio is used to determine the capacity of acompany to pay interest on its outstanding DebtIt is calculated by Its shows that how many time a Company can meet out the interestLiability out of its EarningsIdeally the ICR should be 2 but if it is    See Answer
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