What is the formula for Time interest earned ( interest cover)?

Thanks for having this kind of questions.

 

Interest Cover: *EBIT/Interest Expense

 

*Earning Before Interest & Tax

 

This above ratio is considered as a Company's Solvency ratio as it measures the company's abilities to make the interest and debt expense.

Time interest earned on interest covered :- FV= P+ SI =P + P (I) (N), FV= Future value SI = simple interest P= Principal amount I = Interest rate per time period N= Number of time periods,