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How do I find Interest Coverage Ratio?

I’m doing a virtual internship on investment analysis, however, I don’t know how to find interest coverage ratio for Apple. Where do I look, what do I calculate?

Reply 1

username5308374

Hello there. The interest coverage ratio of Apple is 20.4x (I googled it). By any chance, are you talking about the Future Impact IM Virtual Internship Programme? I'm also doing it. Hope this helps. :smile:

Reply 2

Random_user45

Original post by SAARAH.A5

Thank you! I saw this too on the Finbox website, I was a bit skeptical because I don’t think they’re an official website?

yes that’s the one! 😀 I’ve just finished my first year of uni studying economics and I’m looking for ways to improve my employability since there are no internships due to coronavirus. I figured this virtual internship would be great as it is widely advertised and I was interested in exactly what analysts do.

what task are you on and how are you finding it so far?

also, what uni do you go to if you don’t mind saying. I go to a pretty low ranked uni at Greenwich Uni haha.

thanks!

Reply 3

username5308374

Original post by Random_user45

Hello. I'm an A level student doing this course as something to put on my personal statement. I've just completed the Fixed income investing task (I found drawing the graph on Excel impossible!) Other than that it's not too bad (so far!).

Reply 4

natninja

Original post by Random_user45

I’m doing a virtual internship on investment analysis, however, I don’t know how to find interest coverage ratio for Apple. Where do I look, what do I calculate?

Original post by SAARAH.A5

For reference, interest cover is how many times the business can cover it's finance costs with its operating profits so ratio is operating profit divided by interest expense (in a simple sense). Similar but related is sent service cover ratio (DSCR) which is probably more important and is cash flows available for debt service (CFADS) divided by interest and principal payments of debt.

Reply 5

Otherdjrj

Interest coverage ratio = EBIT/Interest Expense

Both can be found on the balance sheet.

Also good on u for taking the initiative to learn stuff outside of ure degree

Reply 6

Random_user45

Original post by SAARH.A5

Hey! Haven't touched the internship in a month haha. Can you please explain how to do the Yield curve if possible.

Thanks!

Reply 7

username5308374

Original post by Random_user45

Hey! Haven't touched the internship in a month haha. Can you please explain how to do the Yield curve if possible.

Thanks!

Follow the instructions on here to create a Yield Curve, but if you are still struggling, try watching YouTube tutorials on how to create a Yield Curve. This may take multiple attempts to complete. If you're still unsure, submit the rest of your work to unlock the example model work. You could also ask the InsideSherpa team for help if you're stuck by clicking on the blue icon (which appears on the corner of the screen).