Match the terms with the definitions.
-The ratio of earnings before interest and taxes to interest expense.
A)accounts receivable turnover
B)book value per share
C)working capital
D)current ratio (working capital ratio)
E)earnings per share
F)gross profit ratio
G)vertical analysis
H)times interest earned ratio
I)leverage measures
J)return on common stockholders' equity
K)quick ratio (acid-test ratio)
L)profitability
M)operating expense ratio

Question

Quizplus · Accepted Answer

The times interest earned ratio measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.

Match the Terms with the Definitions