Times Interest Earned Calculator

The Times Interest Earned compares Operating Profits to the Interest Expense. What this calculation provides is a way to see how well the company can cover its interest on the debt it has financed.

If Times Interest Earned increases over time:

An increasing Times Interest Earned usually indicates the company has been more able to cover the interest on the debt it has financed.

If Times Interest Earned decreases over time:

A decreasing Times Interest Earned usually indicates the company has been less able to cover the interest on the debt it has financed.

If Times Interest Earned stays the same over time:

An unchanged Times Interest Earned usually indicates the company''s ability to cover the interest on the debt it has financed has remained the same.