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

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

Quizplus · Accepted Answer

A high value for the times interest earned ratio indicates that the company is capable of covering its interest expenses with its earnings. This makes the company less risky for the borrower, as it is less likely to default on its debt obligations.

A High Value for the Times Interest Earned Ratio Means