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Why the Interest Coverage Ratio Matters
A high ICR suggests that a company is generating enough earnings to comfortably meet its interest obligations, indicating strong financial health and lower risk of default. A low ICR can signal financial strain, as the company may struggle to pay interest, potentially leading to higher financial risk.
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https://economictimes.indiatimes.com/markets/web-stories/how-to-calculate-the-interest-coverage-ratio/slideshow/121847126.cms
