Earnings before interest and taxes divided by interest is best described as the:

Question

Quizplus · Accepted Answer

The correct answer is C) times interest earned. This financial metric measures a company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT). It does not relate to the equity multiplier, debt-equity ratio, or cash flow to debt ratio, which assess different aspects of a company's financial health.

Earnings Before Interest and Taxes Divided by Interest Is Best