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 ?
Net Times Interest Earned or Net TIER is equal to the "Patronage Capital or Margins" (line 27, Page 1 of 7, of the REA Form 7), plus "Interest on Long Term Debt" (line 15), divided by "Interest on Long Term Debt" (line 15).
Besides the standard liquidity, profitability, and leverage ratios, the program will calculate many useful bits of information, including times interest earned, working capital required, cash conversion period, real cash flow, and many others.
STRONG MEMBER COOPERATIVE PERFORMANCE: Member cooperative performance in fiscal 2011 was reasonably strong as evidenced by the consolidated times interest earned (TIER) ratio of 2.
05x Times Interest Earned Ratio (TIER) and Debt Service Coverage (DSC) of 1.