times interest earned


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

times interest earned

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

times interest earned

see INTEREST COVER.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
In the heavy industries sector, 92.79 per cent (Model 1) and 53.96 per cent (Model 2) of the R-square adjusted variation in the cost of equity are determined by income gearing (times interest earned), capital gearing (long-term debt/total investment) and size (natural logarithm of market capitalisation whose coefficient agrees in sign with Fama and French (1998), as revealed in Table 4).
Table One also displays the debt-to-equity ratio and times interest earned ratios for the bankrupt firms.
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.