2023年11月21日 · The formula for times interest earned is calculated by looking at the income statement and taking income before interest and taxes divided by the interest expense. Once the ratio is calculated, it ...

2023年11月21日 · The interest coverage ratio is calculated by dividing earnings before interest and taxes by interest expense. The debt ratio , also called the debt-to-assets ratio is calculated by dividing total ...

Learn the times interest earned ratio formula and understand how TIE ratios are analyzed. Related to this Question Chutes & Co. has an interest expense of $1.73 million and an operating margin of 11.5% on total sales of $30.4 million.

Which of the following conditions indicate a company has a relatively high level of financial risk? a) A high debt to assets ratio b) A low times interest earned ratio c) A high times interest earned ratio d) A low current ratio; A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual income is $36,000.

The fixed-charge coverage ratio is a very popular measure of a company's ability to pay all of its fixed charges with its income before interest and income taxes (IBIT). Lenders especially like ...

The interest coverage ratio is a useful indicator of how well a company is managing its debt relative to other companies by looking at how much they pay for interest relative to what they are making. The interest coverage ratio can indicate that a company is struggling due to financial issues or should not be lent to if it looks like they will ...

Using the income statement for Times Mirror and Glass Co., compute the following ratios: a. Compute the interest coverage ratio. b. Compute the fixed charge coverage ratio. The total assets for this c; A firm has an EBIT of $300,000 and a depreciation expense of $12,000. Fixed charges total $44,000. Interest expense totals $7,000. What is the ...

Define each of the following financial leverage ratios: a. debt ratio; b. times-interest-earned (TIE) ratio; c. coverage ratio; Creskill Corp has a debt-total asset ratio of 42% and return on total assets of 9%. Compute the return on equity. Assume that your firm has ROA of 17.5%, ROE of 38% and Total Asset Turnover ratio of 2.75.

The company's times interest earned ratio equals: A. 2.45 B. 0.50 C. 4.91 D. 2.00 E. 0.20; A company had a fixed interest expense of $6,900, its income before interest expense, and any income taxes was $19,320 and its net income was $9,300. The company's times interest earned ratio equals to a) 1.35 b) 12,420 c) 0.36 d) 2.80 d) 0.74

The tax rate was 34 percent. The firm paid $3,685 in total interest expense and deducted $4,382 in depreciation expense. What was the company's cash coverage ratio for the year? Using the income statement for Times Mirror and Glass Co., compute the following ratios: a. Compute the interest coverage ratio. b. Compute the fixed charge coverage ratio.