Question
I am trying to calculate the Times Interest earned ratio for a company and came up with Operating Income/Interest expense 574/1020 = .56 I wasn't
I am trying to calculate the Times Interest earned ratio for a company and came up with
Operating Income/Interest expense
574/1020 = .56
I wasn't sure if I would change this to a percentage which would show as 56.27% Or leave it as a number .56 Which indicates that the company is not generating enough cash from its operations EBIT to meet its interest obligations.
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Accounting Information Systems Controls and Processes
Authors: Leslie Turner, Andrea Weickgenannt, Mary Kay Copeland
3rd edition
1119329566, 1119329565, 1119386179, 1119302110, 9781119302117 , 978-1119329565
