PEV help - interest cover

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Emma1708
Emma1708 Registered Posts: 217 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Please can someone help me with the interest cover ratio? I have just seen it listed in the chief assessors report as one of the ratios that may arise and I cant find anything in my text book

Thank you x

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  • Yazi
    Yazi Registered Posts: 225 Dedicated contributor 🦉
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    Its a Gearing ratio

    Interest Cover = PBIT (Profits before Interest and Tax)
    Interest charge
  • Yazi
    Yazi Registered Posts: 225 Dedicated contributor 🦉
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    The reply looked ok till I posted it.

    Thats PBIT divided by Interest Charge
  • Emma1708
    Emma1708 Registered Posts: 217 Dedicated contributor 🦉
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    Thank you xx
  • moozy84
    moozy84 Registered Posts: 5 New contributor 🐸
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    Hi all

    Just a silly question, where did you got the chief assessor's report from?

    Thankx
  • moozy84
    moozy84 Registered Posts: 5 New contributor 🐸
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    Ignore my previous post plz. Good luck 2 everyone. Dont forget to revise properly your ratios! I failed last June on section 2 :crying:

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