The times interest earned ratio uses accrual based figures from the income statement for its calculation.

Name: The times interest earned ratio uses accrual based figures from the income statement for its calculation.
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The times interest earned ratio is calculated using figures from the income statement, specifically the earnings before interest and taxes (EBIT) and the interest expense. These are accrual based figures, as opposed to cash flow based figures.

The Times Interest Earned Ratio Uses Accrual Based Figures from the Income