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
Calculation of interest coverage for United Parcel Service (Data is taken from the annual report of the company for the year 2017 and 2018)
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Learn more about this topic:
fromChapter 8 / Lesson 3
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.