Times Interest Earned Ratio | Financial Accounting

Hey everyone, Jonathan Wild here!
Today, we’re going to delve into an essential financial metric known as the Times Interest Earned ratio. Times Interest Earned measures a company’s ability to cover its interest expenses on outstanding debt. It’s a critical indicator of financial stability, showing how many times a company can cover its interest payments with its earnings before interest and taxes.
In this video, we will discuss and analyze the Times Interest Earned ratio and its components, work through a detailed example together, and interpret the results.
If you found this video helpful, or if you have any questions about this financial metric or others, please leave a comment below. Don’t forget to like, share, and subscribe for more insightful financial accounting content. Until next time!
Jonathan M. Wild
www.wildaccounting.com
#accounting #accountingstudent

[@Kasairi]

Thanks for the quick breakdown! Straight to the point! This helped A LOT.

[@wildaccounting]

Awesome!

[@PoonamSharma-xz4bd]

Great explanation... thank you 😊

[@wildaccounting]

You're welcome!