The formula to calculate the Times Interest Earned Ratio (TIE) is:
\[ \text{TIE} = \frac{\text{EBIT}}{\text{Interest Expense}} \]
The times interest earned ratio (TIE) is a financial metric that indicates the ability of a company to cover its interest payments with its earnings before interest and taxes (EBIT). It is calculated by dividing EBIT by interest expense.
Let's assume the following:
Step 1: Calculate the times interest earned ratio:
\[ \text{TIE} = \frac{8,545}{653} = 13.09 \]
Therefore, the Times Interest Earned Ratio is 13.09.
