Define: Times Interest Earned Ratio

UK 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. The times interest earned calculation is a corporation’s income before interest and income tax expense, divided by interest expense.



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Definition Sources


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

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.