Explain How to Calculate Times Interest Earned and How It

question 15

Essay

Explain how to calculate times interest earned and how it is used to analyze a company's risk.

---

Definitions:

Disaggregation

The process of breaking down aggregated data into smaller segments or detailed components for deeper analysis.

Aggregate Planning

A process in operations management focused on developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

Inventories

Assets that are held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.