UPS has an interest coverage ratio (EBIT ÷ interest expense) of 9.95 (6,019 / 605). What does this indicate?
Answer:- Times interest coverage/earned ratio= Income before Interest & Taxes (EBIT) / Interest expenses.
= $6019/$605
= 9.95 times
UPS have a ratio of 9.95 times, it means that makes 9.95 times more earnings compare to their debt payments. Hence UPS having the ability to pay interest on their debt along with their principal payments.
UPS has an interest coverage ratio (EBIT ÷ interest expense) of 9.95 (6,019 / 605). What...