Difference between revisions of "Times interest earned ratio"

Revision as of 03:26, 9 November 2019

Times interest earned ratio (or, simply, times interest earned; hereinafter, the Ratio) is a debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Times interest earned ratio. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Interest coverage ratio. Also called the times interest-earned (TIE) ratio; determined by dividing earnings before interest and taxes by the interest expense.

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

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 :[[Times interest earned ratio]]. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called [[interest coverage ratio]].
 According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
-:[[Interest coverage ratio]]. Also called the times interest-earned (TIE) ratio; determined by dividing earnings before interest and taxes by the interest expense.
+:[[Interest coverage ratio]]. Also called the times interest-earned (TIE) ratio; determined by dividing [[earnings before interest and taxes]] by the interest expense.
 ==Related concepts==