times interest earned


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Related to times interest earned: Fixed Charge Coverage

Times Interest Earned

A measure of a company's ability to service its debts. It is calculated by dividing the company's earnings before interest and taxes by the total interest payable on its debts, expressed as a ratio. Investors prefer publicly-traded companies to have a middling times-interest-earned ratio. A low ratio indicates an inability to service debts, while too high a ratio indicates a lack of debt that investors may find undesirable.

times interest earned

times interest earned

see INTEREST COVER.
References in periodicals archive ?
48) ** Gearing Times Interest Earned Standard Deviation of Earnings Q Ratio F-Ratio 26.
And with Halifax's pounds 100 incentive to switch paid up front, total returns could be three times interest earned over the same period from Abbey.
AECI's 1997 financial performance provided solid debt service coverage and times interest earned ratios of 1.
Financial ratios such as the Times Interest Earned (TIER), the Debt Service Coverage (DSC), and the Return on Equity (ROE) provide simple, yet informative, insights into the member's financial position.