Economics · Economy
Which accounting ratio indicates how comfortably a business can meet its interest obligations on outstanding debt using its operating income?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debt-to-Equity Ratio
- 2Debt Ratio
- 3Interest Coverage Ratio✓
- 4Return on Assets (ROA)
Correct answer
Interest Coverage Ratio
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