times-interest-earned ratio

times-interest-earned ratio　收益对债务利息倍数比率　

A metric used to measure a company’s ability to meet its debt obligations.It is calculated by taking a company’s earnings before interest and taxes（EBIT）and dividing it by the total interest payable on bonds and other contractual debt.It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis.Failing to meet these obligations could force a company into bankruptcy.