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, also known as the interest coverage ratio, uses accrual based figures such as operating income and interest expense from the income statement to calculate the ability of a company to make interest payments on its debt obligations.

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