Series 6: Interest Coverage Ratio

Taken from our Series 6 - Investment Company Products/Variable Contracts Representative Exam

Definition of the term Interest Coverage Ratio...

a measure of a company's ability to meet its interest payments, calculated by dividing earnings before interest and taxes (EBIT) by its interest expenses. Also called the company’s times interest earned (TIE).

Since you're reading about Series 6: Interest Coverage Ratio, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 6
Please Enable Javascript
to view this content!