Match the ratio that goes with each formula.
-$\frac {\text { Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings, and Noncontrolling Interest }} { \text {Interest Expense, Including Capitalized Interest} }$

A)times interest earned
B)fixed charge coverage
C)debt ratio
D)debt/equity ratio
E)debt to tangible net worth

Question

Match the ratio that goes with each formula.
-$\frac {\text { Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings, and Noncontrolling Interest }} { \text {Interest Expense, Including Capitalized Interest} }$

A)times interest earned
B)fixed charge coverage
C)debt ratio
D)debt/equity ratio
E)debt to tangible net worth

Quizplus · Accepted Answer

The given ratio matches the definition of the times interest earned ratio, which measures a company's ability to meet its interest obligations.

Match the Ratio That Goes with Each Formula A)times Interest Earned B)fixed Charge Coverage C)debt Ratio D)debt/equity Ratio

Match the Ratio That Goes with Each Formula A)times Interest Earned
B)fixed Charge Coverage
C)debt Ratio
D)debt/equity Ratio