A company is worried about meeting its interest expenses, so it should pay close attention to its times interest earned.

Question

Quizplus · Accepted Answer

Times interest earned (TIE) is a measure of a company's ability to meet interest payments on its outstanding debt. A higher TIE ratio indicates better financial health and a lower likelihood of defaulting on interest payments, while a lower TIE ratio indicates a higher risk of default. Therefore, a company that is worried about meeting its interest expenses should pay close attention to its TIE.

A Company Is Worried About Meeting Its Interest Expenses, So