Banks can use the times interest earned ratio as a measure of a borrower's ability to repay their loan.

Name: Banks can use the times interest earned ratio as a measure of a borrower's ability to repay their loan.
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The times interest earned ratio is a financial metric used by banks to assess a borrower's ability to service their debt, specifically measuring how many times a company's earnings can cover its interest expenses, thus indicating the borrower's repayment ability.

Banks Can Use the Times Interest Earned Ratio as a Measure