times interest earned

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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 ?
For the fiscal year ended May 31, 1994, CFC reported a times interest earned ratio (TIER) of 1.
85 times (x), and times interest earned ratio (TIER) at 1.
For the fiscal year ended May 31, 1993, CFC reported a times interest earned ratio (TIER) of 1.
Financial ratios of Buckeye have been good, with the times interest earned ratio (TIER) typically exceeding 1.
Financial performance demonstrated continued improvement in 1993 with a times interest earned ratio (TIER) of a healthy 1.
12 times interest earned ratio exceeding its primary financial objective of a 1.
50 times (x) to 2x, a times interest earned ratio of around 1.