Quantitative measures that help determine whether a company or group is likely to meet its financial obligations, including interest, dividends, and capital repayments.
Gearing ratios, also known as leverage ratios, measure the relationship between a company's capital structure, particularly its debt and equity. These ratios are crucial for assessing a company's financial stability and risk level.
Interest cover, also known as the fixed-charge-coverage ratio, is a financial metric used to assess a company’s ability to meet its interest obligations from its earnings before interest and tax (EBIT).
A Ratio Covenant is a form of covenant in a loan agreement that includes conditions relating to financial ratios such as the gearing ratio and interest cover.
