times interest earned ratio
Definition
Income statement ratio that indicates the extent to which earnings can decline without resulting in creditor-problems due to non-payment of interest. Formula: Earnings before interest and taxes (EBIT) ÷ interest expense.
times interest earned ratio is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/times-interest-earned-ratio.html
email to a friend
print this definition
cite this definition
link to this page







