The times-interest-earned (TIE) ratio shows how well a firm can cover its interest payments with operating income. Compare the income statements of Mitata Co. and Gadgetron Inc. and calculate the TIE ratio for each firm. Complete the following statement, based on the calculations you have already made. Describe the relationship between the TIE ratios of the two companies. The companies have equal TIE ratios. Gadgetron Inc. has a greater TIE ratio than Mitata Co.. Mitata Co. has a greater TIE ratio than Gadgetron Inc.. Which company is in better position to cover its interest payments, and therefore exhibits lower risk, than the other? Gadgetron Inc. is in a better position to cover its interest payment. Both companies are equally positioned to cover their interest payments. Mitata Co. is in a better position to cover its interest payment