Question
Times-interest-earned ratio = Operating income/Interest expense If Operating income = $1,108 and Interest expense = $154 Then, Times-interest-earned ratio = ($1,108 + $154)/$154 = 8.2
Times-interest-earned ratio = Operating income/Interest expense
If Operating income = $1,108 and Interest expense = $154
Then, Times-interest-earned ratio = ($1,108 + $154)/$154 = 8.2
Question: In the example above, what does 8.2 mean?
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MIS Management Information Systems
Authors: Hossein Bidgoli
8th edition
978-1337406932, 1337406937, 978-1337406925, 1337406929, 978-0357004357
