Based on the below figures, what is the interest cover ratio?
$\begin{array}{lr}
& £ 000 \
\text { Sales } & 15,000 \
\text { Gross Profit } & 5,000 \
\text { Operating Profit } & 3,000 \
\text { Finance Expense } & 500 \
\text { Profit Before Taxation } & 2,500
\end{array}$

Question

Based on the below figures, what is the interest cover ratio?
$\begin{array}{lr} 
& £ 000 \
\text { Sales } & 15,000 \
\text { Gross Profit } & 5,000 \
\text { Operating Profit } & 3,000 \
\text { Finance Expense } & 500 \
\text { Profit Before Taxation } & 2,500
\end{array}$

Quizplus · Accepted Answer

The interest cover ratio is calculated as Operating Profit divided by Finance Expense. Here, it is £3,000 / £500 = 6 times.

Based on the Below Figures, What Is the Interest Cover