What is the formula for simple interest earned?

Interest earned according to this formula is called simple interest. The formula we use to calculate simple interest is I = P rt I = P r t. To use the simple interest formula we substitute in the values for variables that are given, and then solve for the unknown variable. It may be helpful to organize the information by listing all four ...

How to calculate and use the interest coverage ratio?

Interest coverage ratio (ICR) = EBIT / Interest expenses. It indicates the number of times an entity could cover the yearly interest payments on its debts from its EBIT, which can be translated as the capacity to support its interest expenses.

What are good times interest earned ratio?

The definition of a ‘good times interest earned ratio’ varies widely for different industries and even for different companies in the same industries. For public utility companies, a TIE ratio close to 2 is also considered decent because they have predictable long-term incomes, due to certain government regulations.