If the interest protection multiple is too low, the enterprise will face the risk of loss and the security and stability of debt repayment. Although the interest protection multiple of the enterprise can maintain the normal solvency, but the interest protection multiple is too low, the enterprise will face the risk of loss, security and stability of debt repayment. The main reason for the low interest repayment multiple is that the company's total profit in 2018 was greatly reduced compared to the previous three years, which shows that the company does not have sufficient profits and cannot afford to pay huge interest expenses. Only by reducing interest expense and borrowing can we make a profit. Only with sufficient surplus can we be able to repay interest expenses, and can enterprises develop in the long run.
正在翻译中..