Times
interest earned is a ratio which measures
the amount of times interest payments can
be covered by income before taxes. Interest
payments are paid before taxes which is why
income before taxes is used in this ratio.
To
calculate Times interest earned:
Times
interest earned = (Income before taxes + interest)
/ Interest charges
Historical and current end-of-day data provided by Interactive Data Corp. and subject to terms of use. Fundamental data supplier: Mergent
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