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Times Interest Earned Ratio
The times interest earned ratio is a financial metric used to measure a company's ability to meet its debt obligations by comparing its income before interest and tax (EBIT) to its interest expenses.
Interest Expense
The cost incurred by an entity for borrowed funds over a period of time.
Inventory Turnover Ratio
A measure of how often a company sells and replaces its stock of goods during a period, calculated as cost of goods sold divided by average inventory.
Gross Profit
The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.
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