tag:blogger.com,1999:blog-4398219283546397306.post7005315803672736569..comments2023-10-18T10:21:42.721-07:00Comments on Xaivier Blog: Value Investment in Stock Market: Fundamental Analysis: Interest Coverage Ratio: Interest Expense to Net Profit RatioXaivier Chiahttp://www.blogger.com/profile/12198630111328748487noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4398219283546397306.post-11213671097883090802014-11-01T10:12:35.663-07:002014-11-01T10:12:35.663-07:00Ah i see. I calculated interest coverage ratio by ...Ah i see. I calculated interest coverage ratio by dividing net profit with interest expense. Sorry, my bad.. Thank you. :)chinshengjihttps://www.blogger.com/profile/17705801054816049414noreply@blogger.comtag:blogger.com,1999:blog-4398219283546397306.post-16049842818636086142014-10-29T02:19:13.440-07:002014-10-29T02:19:13.440-07:00"higher the ratio of interest expense to net ..."higher the ratio of interest expense to net profit" means the amount of interest expense is a lots compared to net profit. So, could you imagine that most of the money you earned is for paying interest? Say profit of 5, 3 is for interest, then your net profit is only 2, with the ratio of 3/2. Xaivier Chiahttps://www.blogger.com/profile/12198630111328748487noreply@blogger.comtag:blogger.com,1999:blog-4398219283546397306.post-66504990329254303752014-10-26T21:27:38.413-07:002014-10-26T21:27:38.413-07:00Hi there,
Shouldn't it be: "The higher th...Hi there,<br />Shouldn't it be: "The higher the ratio of interest expense to net profit, the lower the possible the company is going to be bankrupt."chinshengjihttps://www.blogger.com/profile/17705801054816049414noreply@blogger.com