Times Interest Earned Ratio

Anyone remember what it is?


Same as interest coverage ratio (EBIT / interest exp)

I just got a question where they asked about times interest earned and I was like, huh? But then I noticed that you could easily back into it and figure out what it was by other information in the question. I think there’s a lot of this on the real exam. If you keep your head on straight, you may be able to piece together certain things. Also, some of those exhibits provide certain explanations and calculations that you might try doing from scratch because you didn’t scan everything.