TIE Ratio

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August 31, 2024 3 min read Definitions

Times Interest Earned (TIE) Ratio: Financial Stability Indicator

Finance Accounting Financial Ratios EBIT Debt Management Corporate Finance TIE Ratio

The Times Interest Earned (TIE) Ratio evaluates a company's ability to meet its debt obligations using its earnings before interest and taxes (EBIT).

August 25, 2024 4 min read Definitions

Times Interest Earned: Financial Metric for Solvency

Finance Accounting Times Interest Earned TIE Ratio Fixed-Charge Coverage Financial Metric Debt Obligation

Times Interest Earned (TIE) is a measure of a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT). The higher the TIE ratio, the better the company's financial health and its ability to cover interest expenses.