Times interest earned ratio
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Times interest earned 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.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- 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.
Related concepts
- 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.
