The financial ratio measured as earnings before interest and taxes,plus depreciation,divided by interest expense,is the:
A) cash coverage ratio.
B) debt-equity ratio.
C) times interest earned ratio.
D) gross margin.
E) total debt ratio.

Question

Quizplus · Accepted Answer

The financial ratio described is the cash coverage ratio, which measures a company's ability to pay interest expenses with its earnings before interest, taxes, and depreciation.

The Financial Ratio Measured as Earnings Before Interest and Taxes,plus