Times Interest Earned Ratio

Instructions: Use this Times Interest Earned Ratio to compute the Times Interest Earned Ratio \((TIER)\) with this calculator. You need to provide the Earnings Before Interest and Taxes \((EBIT)\) and the interest paid in the form below:

Earnings Before Interest and Taxes \((EBIT)\) =
Intertest =

Times Interest Earned Ratio Calculator

More about this times interest earned ratio calculator that will allow to get a step-by-step calculations. The Times Interest Earned Ratio corresponds to the ratio between the EBIT and the interest . This ratio is a measure of long term solvency, and it indicates the number many times earnings can pay for the interest owed:

\[ TIER = \displaystyle \frac{EBIT}{\text{Interest}}\]

The Times Interest Earned Ratio is a commonly used financial ratio. You can find other financial ratio calculator in our site, such as our current ratio, quick ratio, inventory turnover calculator.

A tightly related profit ratio is the Cash Coverage Ratio, which usually reported along with the Times Interest Earned Ratio.

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