The times interest earned ratio shows the amount of interest earned for each dollar of interest expense.
BT: Comprehension

Name: The times interest earned ratio shows the amount of interest earned for each dollar of interest expense. BT: Comprehension
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The times interest earned ratio measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes (EBIT) by interest expense, not the amount of interest earned.

The Times Interest Earned Ratio Shows the Amount of Interest