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Times Interest Earned Ratio (TIE) Calculator
This tool is used to calculate the company times interest earned ratio based on earnings before interest taxes and interest expenses instantly.
Results
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Formula To Calculate Times Interest Earned Ratio (TIE) :
TIE measures how easily a firm can pay its debts with its current income.
To calculate the Times Interest Earned Ratio(financial), use the following formula
Times Interest Earned = EBIT / Interest Expense
Where
EBIT - Earnings before Interest and Taxes
Example :
Company XYZ has an EBIT of $4,000 and interest expense of $2,000.
Times Interest Earned = (4000/2000) = 2
Therefore, this company XYZ has a times interest earned of 2, meaning that Company XYZ income is 2 times greater than the annual interest expense.
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