The times- interest- earned ratio measures the number of times that profit before interest and taxes can pay interest expense.

Name: The times- interest- earned ratio measures the number of times that profit before interest and taxes can pay interest expense.
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The times-interest-earned ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense, indicating how many times a company can cover its interest obligations with its earnings.

The Times- Interest- Earned Ratio Measures the Number of Times