The Times Interest Earned Ratio calculator compute the Times Interest Earned Ratio which is a metric used to measure a company's ability to meet its debt obligations. It is calculated by taking a company's earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt. It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these obligations could force a company into bankruptcy.

Also referred to as "interest coverage ratio" and "fixed-charged coverage."

INSTRUCTIONS: Enter the following:

• I - Income Before Interest and Tax
• E- Interest Expense

The calculator computes the Returns Times Interest Earned Ratio

Notes

Times Interest Earned Ratio is an income statement measure of the ability of a company to meet its interest payments.