Calculate the _________________ to assess a company's ability to cover its interest payments,as compared to its peers.

Question

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The times interest earned ratio, also known as the interest coverage ratio, measures a company's ability to pay its interest payments with its earnings before interest and taxes (EBIT). This ratio is a useful benchmark to compare a company's ability to cover its interest payments with its industry peers. The higher the ratio, the more capable the company is of servicing its debt.

Calculate the _________________ to Assess a Company's Ability to Cover