Calculate the interest coverage for United Parcel Service, for 2017 and 2018.

Question:

Calculate the interest coverage for United Parcel Service, for 2017 and 2018.

Interest coverage ratio:

The ratio which helps the company in determining the position or capability of paying interest on its debt is known as interest coverage ratio. It is called as 'times interest earned'. It also helps in determining the riskiness related to funds borrowed.

Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answer

Calculation of interest coverage for United Parcel Service (Data is taken from the annual report of the company for the year 2017 and 2018)

{eq}\begi...

See full answer below.


Learn more about this topic:

Loading...
Times Interest Earned Ratio: Formula & Analysis

from

Chapter 8 / Lesson 3
1.8K

In this lesson, we'll discuss times interest earned and calculate and analyze the ratio. You'll also learn the relationship between interest rates and risk.


Related to this Question

Explore our homework questions and answers library