Accountancy, asked by danyalbee, 11 hours ago

Write a short note on time ratio

Answers

Answered by kp959049

Explanation:

The numerator of the formula has EBIT. ...

The denominator is the total interest expense of the firm, which is a burden for the firm, and when EBIT is divided by total interest expenses, it can be interpreted as how many times the firm is earning to cover its interest obligation.

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