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Answer: Coverage ratio.
**Explanation:** The EBITDA/interest expense ratio is classified as a **coverage ratio** because it measures an issuer's ability to meet (or "cover") its interest payments. Coverage ratios are critical in credit analysis, with the EBITDA/interest expense and EBIT/interest expense ratios being the most common. - **Option A (Leverage ratio)** is incorrect. Leverage ratios, such as debt/capital or debt/EBITDA, assess the extent of an issuer's debt relative to its equity or cash flows, not its ability to cover interest payments. - **Option C (Profitability ratio)** is also incorrect. While EBITDA is a measure of cash flow, the EBITDA/interest expense ratio does not evaluate profitability but rather the sufficiency of cash flow to service debt.
Author: LeetQuiz Editorial Team
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