No, times interest earned is not a profitability ratio. It is a solvency ratio. The ratio does not seek to determine how profitable a company is but rather its capability to pay off its debt and remain financially solvent. If a company can no longer make interest payments on its debt, it...
Investors and analysts use ratio analysis to evaluate the financial health of companies by scrutinizing past and current financial statements. For example, comparing the price per share to earnings per share allows investors to find theprice-to-earnings (P/E) ratio, a key metric for determining t...
By David Chesnick, Ag Economist USDA Rural Development Table 1--Selected ratios, 2003-04, Top 100 Cooperatives 2004 2003 Current Ratio 1.35 1.35 Quick Ratio 0.73 0.73 Debt-To-Assets 0.64 0.63 Long-Term Debt-To-Equity 0.69 0.81 Times Interest Earned 3.85 3.31 Local Assets Turnover 3.48 3.24 ...
If you don't want to buy Treasury bonds directly, you can find them withinmutual funds. Many mutual funds include stocks, bonds and other investments along with Treasury bonds. You can also purchase Treasury bonds via ETFs, which trade like stocks. As a beginner looking to invest for the l...
Multiply the result from Step 5 by the amount of money you put in the bank account to determine how much interest you have earned. Finishing the example, if you had $13,200 in the account, you would multiply 0.015712025 by $13,200 to find that you have earned $207.40 in interest....
If you find that you have increasingly challenging financial questions and would like personalized input, that’s the time to consult with a financial planner who can give you some perspective on your situation, along with action items to achieve your goals.Editorial...
“The simple way to look at the APY—it’s what you will get on your money,” Griffin says. Meaning, you can use the APY to determine how much you’ll actually earn in interest each year because the APY relies on two inputs: the interest rate and how often the interest compounds. ...
Worst of all, they take a percentage of your hard earned moneyevery yearfor that “service”. And then you're expected to blindly accept whatever returns the market gives (net of their fees, of course!). The unpredictability of it all is paralyzing. ...
Knowing your bank's typical processing times will help you set realistic expectations for the moment you can finally say, "My refund's here!" How can I check the status of my refund? Once you have e-filed your tax return, there are a few ways to check the status of y...
Times interest earned (TIE), also known as afixed-charge coverage ratio, is a variation of the interest coverage ratio. This leverage ratio attempts to highlight cash flow relative to interest owed on long-term liabilities. To calculate this ratio, find the company’s earnings before interest ...