The ratio of EBIT to interest expenses is known as the:

A) quick-ratio.
B) debt-to-assets ratio.
C) debt-to-equity ratio.
D) times interest earned.
E) None of the above

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.

Debt-to-Assets Ratio

Debt-to-Assets Ratio is a financial ratio indicating the proportion of a company's assets that are financed through debt, used as a measure of financial leverage.

Quick-Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.