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Times Interest Earned Ratio
The times interest earned ratio (TIE) calculates the ratio between a company's earnings before income and taxes (EBIT) to the interest obligations the company has for each dollar. In simpler words, the TIE ratio measures a company's earning in terms of interest obligations per dollar. Calculating the TIE ratio may seem like a daunting question at first. It is really simple once you learn how it's done.
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