Which ratio may indicate that the firm will not be able to meet interest obligations due on outstanding debt?

The interest coverage ratio is a key indicator that may suggest a firm will struggle to meet its interest obligations on outstanding debt. This ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A ratio less than 1 indicates that the firm is not generating enough earnings to cover its interest expenses, signaling potential difficulties in meeting debt obligations.