Do get how is this equation called interest earned? What is the earned interest from that?
EBIT/Interest Expense
Do get how is this equation called interest earned? What is the earned interest from that?
EBIT/Interest Expense
Anyone!
This isn’t an equation (there’s no equal sign).
What makes you think that this expression is called _ interest earned _?
(It is called the interest coverage ratio, for whatever that’s worth.)
It’s not called interest earned.
If you read that somewhere, rest assured that whoever wrote it is wrong.