TIE Ratio

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

Get More Help!

Click one of these links to get more help from another Cramlet in this same chapter:

• Study Sheet of Debt Management Ratios
• TIE Ratio
• Equity Multiplier
• EBITDA Coverage
• Debt to Equity Ratio
• Debt Ratio