Times Interest Earned
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Potential lenders are interested in determining the ability of a borrower to cover the interest charges on the amount of money that is loaned out. One way to measure this is to calculate the Times Interest Earned financial ratio. This short video demonstrates this calculation.
Source: Dave Alldredge, https://www.youtube.com/watch?v=3IhhZGzil0I
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Last modified: Friday, 6 May 2022, 11:27 AM