Which Ratio Is Calculated by Dividing Profit Before Interest and Taxes

question 115

Multiple Choice

Which ratio is calculated by dividing profit before interest and taxes by total interest charges?

• A) inventory turnover
• B) fixed asset turnover
• C) total asset turnover
• D) debt-to-equity ratio
• E) times-interest-earned

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Definitions:

Management

The process of dealing with or controlling things or people, often within a business or organization.

Organizational Conditions

The various factors and circumstances within an organization that affect its operations and effectiveness.

Performance

refers to the ability to execute tasks and duties effectively and efficiently, often measured against pre-defined standards.

Motivation to Perform

The internal drive or incentive that propels individuals or groups to pursue and achieve specific goals with dedication and effort.