Which of the following ratios measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs?
A)fixed charge coverage ratio
B)debt ratio
C)times-interest-earned ratio
D)return on equity
E)profit margin

Question

Quizplus · Accepted Answer

The times-interest-earned ratio measures how many times a company's operating income can cover its interest expenses, indicating the firm's ability to meet its annual interest costs.

Which of the Following Ratios Measures the Extent to Which