"Interest coverage ratio" can be computed as: Option 1: PAT/Interest Option 2: EBIT/Interest Option 3: EBIT/(Interest + Depreciation) Option 4: PAT/(Interest + Depreciation)

The answer is 'EBIT/Interest'. View full solution:

CUET Business Studies - "Interest coverage ratio" can be computed as: | PYQs + Solutions

CUET Business Studies 2026 29th May Shift 2

Business Studies

Easy

$PAT/Interest$

$EBIT/Interest$

$EBIT/(Interest + Depreciation)$

$PAT/(Interest + Depreciation)$

✅ Correct Option: 2