Question
What is the name of the ratio calculation that we use for calculating the coverage ratios?
Times Interest Ratio
Times Earned Ratio
Times Ratio
Times Interest Earned Ratio
Times Interest Ratio
Times Earned Ratio
Times Ratio
Times Interest Earned Ratio
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Answered by
GPT-4o mini
The correct name for the ratio used to calculate coverage, particularly in the context of debt obligations, is **Times Interest Earned Ratio**. This ratio measures a company's ability to meet its interest payments on outstanding debt.
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