Business, Legal & Accounting Glossary
An indicator of a company’s ability to meet the interest payments on it’s debt.
The times interest earned ratio, sometimes called the interest coverage ratio, is a coverage ratio that measures the proportionate amount of income that can be used to cover interest expenses in the future.
An indicator of a company’s ability to meet the interest payments on it’s debt.
The times interest earned calculation is a corporation’s income before interest and income tax expense, divided by interest expense.
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This glossary post was last updated: 21st July, 2019 | 0 Views.