TapRun Consulting

Times Interest Earned Ratio Calculator

Answers the Question

Can we pay the interest owed with our earnings?

Calculator for Times Interest Earned Ratio

 

What Is the Times Interest Earned Ratio?

This is a measure of how well a firm can cover interest costs with its earnings. The larger the number, the more easily interest can be paid.

Also called interest coverage ratio.

Why Is it Important?

Formula(s) to Calculate Times Interest Earned Ratio

Common Mistakes

Additional Business & Financial Calculators Available