Chutes & Co. has interest expense of $ 1.44 million and an operating margin of 10.4...
Chutes & Co. has interest expense of
$ 1.44
million and an operating margin of
10.4 %
on total sales of
$ 29.8
million. What is Chutes' interest coverage ratio?
Homework Answers
solution
the operating margin=(10.4*%29.8million)
=$3.0992million
the interest coverage ratio=operating margin/interest expense
=$3.0992million/$1.44million
which is equal to =2.15(Approx)
THANK YOU
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Chutes & Co. has interest expense of
$ 1.44
million and an operating margin of
10.4...
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