Asked by
Darrius Avery
on Oct 09, 2024
Verified
The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes ÷ Interest expense.
Times Interest Earned
A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.
- Comprehend the computation and analysis of financial ratios.
Verified Answer
RG
Learning Objectives
- Comprehend the computation and analysis of financial ratios.