Identify the assumptions underlying the interest coverage ratio needed to make it an appropriate measure for analyzing

Question:

Identify the assumptions underlying the interest coverage ratio needed to make it an appropriate measure for analyzing long-term risk.

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...