Content Relevance and Uses of Times Interest Earned Formula Times Interest Earned Ratio How To Interpret Interest Coverage Ratio How To Calculate Interest Coverage Ratio Using EBITDA How to Interpret Times Interest Earned (High vs. Low TIE Ratio) Examples of Times Interest Earned Ratio Formula (With Excel Template) If a firm’s TIE ratio is low, it might be safer for the company to favor equity issuance as opposed to adding more debt and interest expense. The times interest earned ratio formula is expressed as income…