Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. why is the times interest earned ratio considered

Why is the times interest earned ratio considered important? ANswer in 100-150 words

60.1K

Verified Solution

Question

Accounting

Why is the times interest earned ratio considered important?ANswer in 100-150 words

Answer & Explanation Solved by verified expert
4.1 Ratings (862 Votes)
Times Interest Earned ratio is used to identify the company ability to service its Interest Payment for the debt This also called as Interest Coverage ratio which shows how well company can    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Why is the times interest earned ratio considered important?ANswer in 100-150 words

Other questions asked by students

Chemistry
1.2K views

Sketch a graph for a titration of a weak acid (burette) against 25cm^3 of a strong...

Mechanical Engineering
1.2K views

A new asteroid is found with a circular sun-orbit 1.27 AU. A spacecraft is going to...

Biology
1.2K views

At an outpatient facility the next patient is having several tubes of blood collected The...

Accounting
1.2K views

Cash flow for/from investing activities is usually negative. In 15 words...

Accounting
1.2K views

Account Balances a. During February, $75,440 was paid to creditors on account, and purchases...

Accounting
1.2K views

XYZ Company purchased a new machine on January 1, 2021 for $80,000. The machine was...

Accounting
1.2K views

The Village of Hawksbill issued $6,000,000 in 5 percent general obligation, tax-supported bonds on July...

Accounting
1.2K views

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in...

Accounting
1.2K views

Una empresa tiene un margen de seguridad del 25%, una relacin de margen de contribucin...

Finance
1.2K views

J&J Electronics has a corporate tax rate of 30%. Last year the company realized $30,000,000...

Accounting
1.2K views

Problem 1. (45 Points) Hoffman Company is a manufacturer of car seats. Each car seat...

Finance
1.2K views

You are given the following information for three securities A, B, and C that are...