The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

Name: The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.
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The times interest earned ratio, also known as the interest coverage ratio, is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. It is a measure of a company's ability to meet its interest obligations with its earnings.

The Times Interest Earned Formula Is Calculated by Multiplying Income