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Basics of Stock Market
What is a Bull and Bear Market? Who are Market Movers? Who are Market Makers? What is Dematerialization of Shares? (Demat) IPO vs FPO vs OFS: What’s the Difference? What is ASBA in IPO Application? What is Grey Market and Grey Market Premium? What is Liquidity in Stock Market? What is Bid Price & Ask Price? What is a Stop-Loss Order? What is Market Order vs Limit Order? What is Pledge of Shares? Who are Promoters and What is Promoter Holding? What is Margin Trading? What is Short Selling? What is Market Depth? Equity vs Debt – What’s the Difference? Role of NSDL and CDSL in the Stock Market Mutual Funds vs Stocks Who are FIIs and DIIs in the Stock Market? What is a Portfolio? What is Settlement Cycle (T+1, T+2, T+3) in Stock Market? Trading Hours in the Indian Stock Market What are Circuit Limits & Circuit Breaker in the Stock Market? What is Book Value of a Stock? What is Rights Issue? Understanding Stock Split and Bonus Shares What is Dividend in Stocks? What is Face Value of a Stock? Difference Between Intraday vs Delivery Trading. What is Volume in Stocks? Large Cap vs Mid Cap vs Small Cap What is Market Capitalization? What is Sensex and Nifty? Who are Retail Investors? Stockbroker vs Sub-broker: What’s the Difference? What is SEBI and Its Role in the Stock Market? Difference Between NSE and BSE How to Invest in the Stock Market in India What is IPO (Initial Public Offering)? Why Do Companies Issue Shares? Types of Stock Markets: Primary vs Secondary Stocks vs Shares – What’s the Difference? How Does the Stock Market Work? What is Stock Market?
Chart Patterns
What is a Rectangle Pattern in Trading? What is Ascending & Descending Triangle in Trading? Flag & Pennant Patterns – The Power of Market’s Mini Break! Double Top & Double Bottom – The Twin Peaks & Twin Valleys of Trading! Cup & Handle Chart Pattern – The Tasty Recipe for Breakouts! Head & Shoulders
Fundamental Analysis
How Mergers & Acquisitions (M&A) Affect a Company’s Fundamentals Industry Structure Analysis – Porter's Five Forces! Consolidated Results vs Standalone Results What is Stock Dilution? What is Promoter Pledge? What are Non-Performing Assets (NPAs)? What are Contingent Assets? What is Working Capital Analysis? CAGR vs YoY Growth: What’s Better? What is Sectoral Analysis? Importance & How to Do It? What is the Scuttlebutt Method in Investing? What is PEG Ratio? What is a Moat in Investing? How to Find Undervalued Stocks? What is Margin of Safety? What is Intrinsic Value? Impact of Inflation on Earnings Operating Leverage vs Financial Leverage – What’s the Difference? What is Goodwill in Balance Sheet? Asset-Light vs Asset-Heavy Businesses What are Contingent Liabilities? Conference Call Analysis Guide How to Analyze Quarterly Results? What is Credit Rating? What is Promoter Holding? What is Shareholding Pattern? How to Read an Annual Report? What is DuPont Analysis? Net Profit Margin vs Gross Profit Margin What is Free Cash Flow? What is Operating Profit Margin? What is EBITDA & EBIT? What is Dividend Yield? What is Interest Coverage Ratio? What is Debt to Equity Ratio? ROE vs ROCE: The Battle of Profitability Metrics! What is PB Ratio? (Price to Book Ratio) What is PE Ratio? (Price to Earnings Ratio) Understanding EPS (Earnings Per Share) What is a Cash Flow Statement? What is Profit & Loss Statement? Balance Sheet Analysis What is Fundamental Analysis?
Indicators
Using MACD Histogram in Trading Pivot Points in Trading – The Magic Levels Every Trader Should Know! ATR (Average True Range) — The Secret of Market Volatility! Volume Weighted Average Price (VWAP) What is Ichimoku Cloud? What is Supertrend Indicator? What is ADX (Average Directional Index)? What is Stochastic Oscillator? What is Fibonacci Retracement Tool? What are Bollinger Bands? What is MACD Indicator? What is RSI (Relative Strength Index)? What is Moving Average?
Technical Analysis
What is Gap Up & Gap Down in Trading? What is Volume Analysis in Technicals? What is a Trendline? What are Support and Resistance Levels? How to Read OHLC Charts Different Chart Types Explained Candlestick Chart Basics What is Technical Analysis?

📝 What is Interest Coverage Ratio?

💡 What is Interest Coverage Ratio? Imagine you earn ₹20,000 per month 💸. But every month you also have to pay ₹5,000 as bike EMI 🚲. How easily can you pay this EMI from your salary? The answer to this is similar to what companies check using the Interest Coverage Ratio (ICR)! 🎯 🎯 What is Interest Coverage Ratio? 👉 Interest Coverage Ratio = EBIT ÷ Interest Expense ✔️ EBIT = Earnings before Interest & Taxes (Company’s profit before paying interest and taxes) ✔️ Interest Expense = Loan interest that company must pay to the bank/lenders 🎨 Funny Example: Bunty runs a popcorn shop 🍿. ✔️ His shop earns ₹50,000 profit (before interest & taxes) — this is EBIT. ✔️ He pays ₹10,000 interest on a loan every month. 👉 Interest Coverage Ratio = ₹50,000 ÷ ₹10,000 = 5 Means: Bunty earns 5 times more than his loan interest. 💪 So, Bunty can easily pay his loan — no tension! 😊 🤔 Why is Interest Coverage Ratio Important? ✔️ It shows how comfortably a company can pay its interest on loans. ✔️ If ICR is high = Company easily covers its loan interest = SAFE 🏦✅ ✔️ If ICR is low = Company struggles to pay interest = RISKY 🚨 🧐 What is a Good Interest Coverage Ratio? ✅ ICR above 3 = Very Good! 🎉 (Company earning 3 times its interest) ✅ ICR between 1.5 to 2.5 = Okay 👌 but keep a watch! ❌ ICR below 1.5 = DANGER zone! ⚠️ (Company may miss payments in bad times) ❌ ICR below 1 = Worst! 😱 (Company not earning enough to even pay interest!) 💥 When High ICR is Great? ✔️ Profitable company ✔️ Small loans ✔️ Low risk — Peace for investors! 😌 ⚠️ When Low ICR is Dangerous? ❌ Big loans ❌ Low earnings ❌ Tough to pay interest — May lead to bankruptcy! 💣 🎯 Quick Gyaan for Investors: ✔️ Always check ICR — tells if company can survive bad times without defaulting! ✔️ High ICR = Safe bet (like buying a strong umbrella ☔ for rainy days!) ✔️ Low ICR = Risky (like driving a bike with no brakes 🚲💥)! 🎈 Funny Tip: A low Interest Coverage Ratio is like having only ₹100 in wallet and trying to pay a ₹500 dinner bill — you are stuck! 🍽️💸😂 🔑 In a Nutshell: ✔️ Interest Coverage Ratio = How many times a company’s profit covers its loan interest? ✔️ High ICR = Company is strong and safe ✅ ✔️ Low ICR = Company may face loan troubles ❌ 💡 “Great businesses earn enough to not just pay their loans — but to enjoy profits after paying them!” 💰🎉
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