Options
- A
Current Ratio
- B
Debt-Equity Ratio
-
Interest Coverage Ratio
Correct answer
- D
Return on Equity
Why this is the answer
Interest Coverage Ratio = EBIT / Interest Expense. It indicates how easily a company can meet interest obligations from operating profits. Current and Debt-Equity ratios assess liquidity and leverage, while ROE measures profitability.
Test yourself for real
Take a full NISM Series XV mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.