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.

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