contestada

High debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more equity . The times interest earned ratio measures the extent to which -Select- income can decline before the firm is unable to meet its annual -Select- payments. Its equation is:

Respuesta :

Tundexi

The times interest earned ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest payments.

What is the times interest earned ratio?

The ratio is a financial tools used to measure the company's ability to meet its debt obligations based on its current income.

The formula for deriving the times interest earned ratio is operating income divided by interest expense.

Therefore, the word is "Operating" and "Interest" is correct.

Read more about times interest earned ratio

brainly.com/question/6480565

Otras preguntas