The ratio divides a company's earnings before interest and taxes (EBIT) by its interest expense over a specific period. The interest coverage ratio may be called the "times interest earned" (TIE ...

Interest expense is a general term used to describe the cost of borrowing money. It can have slightly different meanings depending on the context, but in corporate finance, interest expense is ...

We often judge a company based on its sales and earnings. However, these metrics may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates ...

This ratio is calculated by dividing EBIT by interest expenses. It measures a company's ability to meet its debt obligations using its earnings from operations. A higher ratio indicates better ...

Interest payments are real expenses that minimize profit margins ... Corporations with low EV/EBITDA ratios tend to be more attractive. For instance, a company with an EV/EBITDA ratio of 10 ...