Leverage Ratios
- Justin Holm
- Jul 3, 2020
- 1 min read
Updated: Aug 12, 2020
Interest Coverage: Is a measure of how easily a company can cover its interest expenses from its continued operations. Operating Income / Interest Expense
Debt Ratio: Shows the amount of leverage used by a company. Total Liabilities / Total Assets (link)
Interest coverage ratio = Operating income / Interest expenses
Debt service coverage ratio = Operating income / Total debt service
Insights:
Chubb vs Ping An
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