[IICA Independent Director] 21, Ratios That Help a Director Ask Better Questions

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: * How to calculate current ratio and interest coverage ratio, stating exact formulas and units. * Why financial ratios require context including multi-year trends, peer benchmarks, and asset quality. * How improving reported profitability can mask dangerous increases in leverage and slowing collections. * Why universal ratio cutoffs like a fixed debt-to-equity or current ratio threshold are incorrect exam choices. * The distinction between general Companies Act reporting and SEBI LODR obligations for listed companies. This independent educational episode offers practice support for the IICA Independent Director Databank test. Access comprehensive practice questions at https://open-exam-prep.com/practice/in-iica-independent-director and watch detailed video lessons at https://www.youtube.com/@Open-exam-prep . Sources checked: September 28, 2026 * https://www.independentdirectorsdatabank.in/ * https://www.mca.gov.in/ * https://www.sebi.gov.in/legal/regulations.html