Times Interest Earned Ratio

Business, Legal & Accounting Glossary

Definition: Times Interest Earned Ratio


Quick Summary of Times Interest Earned Ratio


An indicator of a company’s ability to meet the interest payments on it’s debt.



What is the dictionary definition of Times Interest Earned Ratio?

Dictionary Definition


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.


Full Definition of Times Interest Earned Ratio


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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Times Interest Earned Ratio. PayrollHeaven.com. Retrieved July 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/times-interest-earned-ratio/

Definition Sources


Definitions for Times Interest Earned Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st July, 2019 | 0 Views.