The Times Interest Earned Ratio Calculator is used to calculate the times interest earned (TIE) ratio.
Times interest earned (TIE) is a measure of a company’s ability to honor its debt payments. It is calculated as a company’s earnings before interest and taxes (EBIT) divided by the total interest payable. The times interest earned ratio is also referred to as the interest coverage ratio.
The Times Interest Earned Ratio calculation formula is as follows:
Times Interest Earned Ratio = EBIT / Total Interest