Times Interest Earned Ratio Calculator – Business Tools – Multi-Tools

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.

Operating Income Details
Earnings before interest and taxes
Total interest payments on debt
Additional Metrics
Total outstanding debt
Effective tax rate
Annual depreciation and amortization
Industry average TIE ratio

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How to Use
  1. Enter operating income (EBIT)
  2. Input interest expense
  3. Provide additional financial metrics
  4. Click Calculate to see analysis
  5. 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

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