In the context of leverage ratios, the figure that estimates how capable a firm is of servicing the current interest owed on its debts is referred to as ________.

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The figure that estimates how capable a firm is of servicing the current interest owed on its debts is known as the times interest earned ratio. This ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). It is also called the interest coverage ratio. Options A, B, and C refer to different types of leverage ratios, but do not specifically relate to the capability of servicing interest payments.

In the Context of Leverage Ratios, the Figure That Estimates