If the "times‑interest‑earned" were 1.5, that implies the interest payments will not be made.

Name: If the "times‑interest‑earned" were 1.5, that implies the interest payments will not be made.
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Question

If the "times‑interest‑earned" were 1.5, that implies the interest payments will not be made.​

Quizplus · Accepted Answer

A times-interest-earned ratio of 1.5 means that the company's earnings are 1.5 times the amount of interest it is required to pay. This suggests that the company has enough earnings to cover the interest payments and is unlikely to default on its interest obligations.

If the "Times‑interest‑earned" Were 1