If the times interest earned ratio
A)Increases,risk increases
B)Is under 1.5,risk decreases
C)Is over 1.5,risk increases
D)Increases,risk decreases
E)Increases and/or is under 1.5,risk decreases

Question

Quizplus · Accepted Answer

The times interest earned ratio measures a company's ability to meet its interest obligations. An increase in this ratio indicates a stronger ability to cover interest payments, thus reducing financial risk.

If the Times Interest Earned Ratio