Difference between revisions of "Times interest earned ratio"

From CNM Wiki
Jump to: navigation, search
(Related coursework)
 
(2 intermediate revisions by the same user not shown)
Line 5: Line 5:
 
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
:[[Times interest earned ratio]]. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called [[interest coverage ratio]].
 
:[[Times interest earned ratio]]. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called [[interest coverage ratio]].
 +
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
 +
:[[Interest coverage ratio]]. Also called the times interest-earned (TIE) ratio; determined by dividing [[operating income|earnings before interest and taxes]] by the interest expense.
  
 
==Related concepts==
 
==Related concepts==

Latest revision as of 03:27, 9 November 2019

Times interest earned ratio (or, simply, times interest earned; hereinafter, the Ratio) is a debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Times interest earned ratio. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Interest coverage ratio. Also called the times interest-earned (TIE) ratio; determined by dividing earnings before interest and taxes by the interest expense.

Related concepts

Related lectures