unit 15

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meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
in AAT Level 3 (Level 6 in Scotland)
hey, anyone know what's the formular for interest cover? thanks

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  • tallrodney
    tallrodney Registered Posts: 24 New contributor 🐸
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    Profit before interest and tax divided by interest.

    Its expressed as the number of times eg: 2.3 times.

    If asked to comment its the number of times you can pay your interest from your profit.
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
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    tallrodney wrote: »
    Profit before interest and tax divided by interest.

    Its expressed as the number of times eg: 2.3 times.

    If asked to comment its the number of times you can pay your interest from your profit.

    thanks so much, did work out at the end! thanks again

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