The formula for the interest coverage ratio is rather simple. Just divide the company's earnings before interest and taxes (EBIT) by the annual interest expense. Note that EBIT is also called ...

The Times Interest Earned ... may have periods of strong coverage followed by weaker periods, making single-period TIE ratios potentially misleading. Accounting Method Variations: Different ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting ... the asset by adding back interest expense in the formula for ROA.

The interest coverage ratio reveals a company's solvency and ability to pay interest on its debt. The interest coverage ratio is a debt and profitability ratio. It shows how easily a company can ...