State whether the following statements are true or false with reasons: The more the interest coverage ratio riskier it is.

False. The interest coverage ratio measures a company's ability to meet its interest payment obligations. It is calculated as Earnings Before Interest and Taxes (EBIT) / Interest Expense. A higher interest coverage ratio indicates that a company has more earnings available to cover its interest expenses, making it less risky for lenders and investors. Conversely, a lower ratio indicates higher risk.