Series 79: 3.3.1. Interest Coverage Ratio

Taken from our Series 79 Online Guide

3.3.1. Interest Coverage Ratio

The interest coverage ratio reflects a company’s ability to meet interest payments out of its earnings. The interest coverage ratio is sometimes referred to as times interest earned (TIE) because the ratio expresses how many times a company can make interest payments out of its operating income. A higher ratio indicates a greater ability to service debt. The closer the

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