Tag: INTEREST

INTEREST

  • Support for mortgage interest loans (SMI) explained

    Support for Mortgage Interest (SMI) is a government scheme in the UK that provides financial assistance to help cover the interest payments on a mortgage or other home loans. The scheme is designed to support homeowners who are receiving certain income-related benefits and are struggling to pay their mortgage interest. Here’s a detailed explanation of… Read more

  • Interest coverage ratio (ICR) explained

    The interest coverage ratio (ICR) is a financial metric used to assess a company’s ability to pay interest on its outstanding debt. It is calculated by dividing a company’s earnings before interest and taxes (EBIT) by its interest expenses for the same period. The formula is: Interest Coverage Ratio=EBITInterest Expense\text{Interest Coverage Ratio} = \frac{\text{EBIT}}{\text{Interest Expense}}Interest Coverage Ratio=Interest ExpenseEBIT​ Importance of the… Read more