Choose language

PL, EN, ES, DE, FR, RU

# Interest coverage ratio or Times interest earned (TIE)

The calculator is used to calculate the coverage of bills by profit before paying off the tax bill.
In the Profit field, enter profit (operating) before tax and interest are subtracted.
In the Interest field, enter the value of the interest paid.

## Interest coverage ratio - calculator

 Profit Interest

Usefull information
Interest coverage ratio or Times interest earned (TIE) – the essence of this indicator is to assess the risk of a situation in which the enterprise will not have cash to pay interest. The interest coverage ratio is as follows:

\begin{align}TIE = \frac{net \ profit + income \ tax + interest}{interest \ and \ bank \ charges}\end{align}

You can also come across a different formula for this indicator:

\begin{align}TIE = \frac{EBIT (operational \ profit)}{interest}\end{align}

Banks and financial analysts use this indicator as the simplest rule to assess the financial condition of a company.

## Users of this calculator also used

### Rail Fence, Zig-Zag - encoder / decoder

Rail Fence, Zig-Zag cipher online encoder and decoder. Encrypt and decrypt any cipher created in a Rail Fence, Zig-Zag cipher.

### Voltage drop calculator from current for single-phase and three-phase circuits

With this calculator you can calculate voltage drops for single-phase and three-phase AC circuits calculated from the rated current. You will also calculate wire length, wire diameter, wire cross-sectional area, voltage or current.

### Life expectancy and actual age by health - calculator

The life expectancy and health age calculator will let you know your life expectancy. First of all, it will make you aware of what factors affect your life expectancy and your real age according to your health.

### Savings calculator - calculator

Thanks to the calculator, you can quickly and easily calculate how much money you will accumulate in a given period by putting a monthly fixed amount on your account for a specified period of time, giving the annual interest rate.

### Storm distance, lightning distance calculator. How far is the storm?

How far is the storm? How close is lightning? Is the storm looming or is it moving away? Surely everyone has asked themselves such questions. That is why we have created a lightning distance calculator with which you can easily check it.

### Timer 555 Monostable, Astable - Output pulse duration calculator

Using this calculator, you will calculate the pulse duration of the output pulse of the NE555 IC in monostable or astable mode of operation.

### Body fat content - a method of measuring skin folds in 7 places

The Body Fat percentage calculator will help you calculate the amount of fat stored in your body. It uses a method of measuring skin folds in seven different places on the body.