A high value for the times interest earned ratio means that a company is a lower risk borrower.

Name: A high value for the times interest earned ratio means that a company is a lower risk borrower.
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Question

Quizplus · Accepted Answer

A higher times interest earned ratio indicates that a company has sufficient earnings to cover its interest expenses. This suggests that the company is in a better financial position and is therefore a lower risk borrower.

A High Value for the Times Interest Earned Ratio Means