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In calculating times interest earned, is it correct that on the financial statements of some companies, interest expense is called interest expense, and on the
In calculating times interest earned, is it correct that on the financial statements of some companies, interest expense is called interest expense, and on the financial statements of others, it is called 'interest, net'? Or, in this second case, is it calculated as 'debt' + 'capital lease and financial obligations', without subtracting 'interest income' in this case?
Here is a table:
Operating Income | 24105 | 27147 | 26872 |
Interest: | |||
Debt | 2027 | 2161 | 2072 |
Capital lease and financial obligations | 521 | 300 | 263 |
Interest income | (81) | (113) | (119) |
Interest, net | 2467 | 2348 | 2216 |
To reformulate: In the above table, what is 'interest expense' for calculating 'times interest earned' = ebit/interest expense?
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