Times Interest Earned Ratio Calculator
Calculate and analyze the Times Interest Earned (TIE) ratio to assess a company’s ability to meet its interest payment obligations. This metric helps evaluate financial health and debt servicing capacity.
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How to Use
- Enter operating income (EBIT)
- Input interest expense
- Provide additional financial metrics
- Click Calculate to see analysis
- Review coverage ratios and risk assessment
Interpretation Guide:
- • TIE > 2: Good debt service capacity
- • TIE 1.5-2: Moderate risk
- • TIE < 1.5: High risk
- • Compare with industry average