The times-interest-earned ratio measures the number of times earnings before interest and taxes can cover interest expense.

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This statement is true. The times-interest-earned ratio, also known as the interest coverage ratio, is a financial ratio that indicates a company's ability to pay interest on its debt. It measures the number of times a company's earnings before interest and taxes (EBIT) can cover its interest expense. A higher times-interest-earned ratio indicates that a company has a stronger ability to cover its interest expenses with its earnings.

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