Coverage Ratios - Business Finance - ثاني ثانوي
PART 1
Chapter 1 An Introduction to Basic Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
Chapter 3 Analysis of Financial Statements
PART 2
Chapter 4 An Introduction to Financial Markets
Chapter 5 Opportunity Costs and the Time Value of Money
Chapter 6 Risk and Its Measurements
Chapter 7 Stock and Bonds
![3.10 Coverage Ratios](https://assets.sahl.io/courses/1203/images/9684ed4d-fa78-4772-b7a3-23f0df3be58f/img-118.webp)
Key Term Times-interest-earned
Times-interest-earned
Abdullah’s industrial service has earnings before interest and taxes
![3.10 Coverage Ratios](https://assets.sahl.io/courses/1203/images/9684ed4d-fa78-4772-b7a3-23f0df3be58f/img-119.webp)
Coverage ratios indicate the ability of the firm to service (to “cover”) interest or dividend payments.
A times-interest-earned ratio of 3.5 indicates:
![](https://sahl.io/img/main/p.png)
![](https://sahl.io/img/main/np.png)