Times Interest Earned Ratio Examples, Samples, Illustration ,Concepts,Calculations Help Online
In accounting world, times interest earned ratio is an important concept. Many students find it difficult to understand it and fails to solve times interest earned ratio example. Just have a look at our site. We are sure that after looking at times interest earned ratio examples in our site you will be capable to understand this concept easily.
Meaning of Times Interest earned ratio
Times Interest earned ratio is also known as TIE or Interest coverage ratio. Times interest earned ratio is used to measure the capability of a company to meet its debt obligations. Times interest ratio is also considered as solvency ratio as it measures the firm’s ability to make payments of its liabilities. Breaking down of times interest earned ratio indicates the failing of the company to meet its obligations that leads to bankruptcy. For calculating times interest earned ratio, earnings before interest and tax & interest expense can be obtained from the income statement of the company.
Services We Offer
Services Provided for Accounting
Accounting always put student on worries and stress. But with Assignment Consultancy for your help, you can remove all your worries by going through our various services:-
- Financial Accounting Homework Help
- Accounting Assignment Help Online
- Financial Accounting Assignment Help
- Managerial Accounting Homework Help
- Do my accounting Homework
- Accounting Case Study Assignment Help
- Finance accounting case studies assignment help
- Taxation homework help
- US tax codes homework help
- Advance Accounting homework help
- Cost Management Homework Help
- Australian Taxation Assignment help
- Ratio analysis assignment help
- Accountancy online exam help
- Accounts online exam help
Features for Accounting Assignment Help Services
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Best Customer Service
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to email@example.com or chat with our representative using live chat shown in bottom right corner.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Most of our clients are from UK, USA, Australia, Canada , UAE, New Zealand, Doha, Qatar, Muscat, Netherlands, France, Italy, Great Britain, Singapore, Malaysia looking for quality and accurate solutions.
Yash Batra, Student , UK University
“Great Experts to provide real time Accounts help services. They are just best in their approach”
Reham Fayad, Student MBA, USA
“They have some of the best USA experts to provide Accounts help online and also help me in my online exams.”
Graham Golith, Lancashire University, UK
“Best place to get all help in Accounts Essay and Exams. Will definitely recommend to all”
Formula for calculating times interest earned ratio
Times interest earned ratio (TIE) = Earnings before interest and taxes (EBIT) / total interest payable on bonds and debts
TIE = earnings before interest and tax / interest expense
Examples of times interest earned ratio
EXAMPLE: Following statements has been collected from the income statement of XYZ Co.
Net income = $900000
Interest expenses of the company = $400000
Taxes = $300000
Using the information given above, calculate the XYZ’s times interest earned ratio.
SOLUTION: Times interest earned ratio = $900000+ $300000 / $400000 = 3.0
That means XYZ Co. is three times able to meet its interest payments.
Visit the link addressed, there are many other similar times interest earned ratio examples. Take help from us and score very good marks in your projects, assignments and schools or colleges works.
Looking for similar Times Interest Earned Ratio Examples types assignment Help,click here . You can visit us for more examples here.