A High Times Interest Earned Ratio Indicates an Extra Margin

question 95

True/False

A high times interest earned ratio indicates an extra margin of protection if the company's profitability declines in the future.

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Definitions:

Stomach

A muscular organ in the gastrointestinal tract that's involved in the second phase of digestion, following chewing.

Gallbladder

A small, pear-shaped organ located under the liver, which stores and concentrates bile, a fluid that helps digest fats.

Common Bile Duct

A major duct that carries bile from the liver and gallbladder into the small intestine for digestion.

Hypopharynx

The lower part of the pharynx (throat) that lies below the oropharynx and above the esophagus and larynx, involved in swallowing.