times interest earned

(redirected from Times Interest Earned Ratio)
Also found in: Acronyms.

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 ?
85 times (x), and times interest earned ratio (TIER) at 1.
Financial ratios of Buckeye have been good, with the times interest earned ratio (TIER) typically exceeding 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.