Which of the following will help an analyst determine how well a firm is able to service its debt?
A) Total liability turnover
B) Times-interest-earned
C) Return on debt
D) Asset ratio

Question

Quizplus · Accepted Answer

The times-interest-earned ratio measures a firm's ability to meet its interest payments with its earnings. A higher ratio indicates that the firm is more capable of servicing its debt. The other options do not directly measure a firm's ability to service its debt.

Which of the Following Will Help an Analyst Determine How