Asked by Brenda Levina on Jul 06, 2024
Verified
Times interest earned is also called the
A) money multiplier.
B) interest coverage ratio.
C) coupon coverage ratio.
D) premium ratio.
Times Interest Earned
A financial ratio that measures a company's ability to meet its interest payments with its earnings before interest and taxes.
Interest Coverage Ratio
A financial metric that measures a company's ability to pay interest on its outstanding debt with its operating income.
Money Multiplier
A concept in monetary economics that describes the maximum amount of money the banking system can theoretically generate with each unit of central bank money.
- Learn how to evaluate a company's debt management efficiency using the times interest earned ratio.
Verified Answer
Learning Objectives
- Learn how to evaluate a company's debt management efficiency using the times interest earned ratio.
Related questions
Remley Corporation Has Provided the Following Financial Data ...
Sidell Corporation's Most Recent Balance Sheet and Income Statement Appear ...
Times Interest Earned Is Computed as ...
ZMart Had Income Before Interest Expense and Income Taxes of ...
Given the Following Data, Determine the Times Interest Earned Ratio ...