A multiple of interest earned refer

A multiple of interest earned refers to the ratio of the company's pre-tax profit to interest expenses over a period of time, reflecting the degree to which the profitability of debt repayments is protected. Of these, interest and pre-tax gross profit are the sum of gross profit and interest expenses, and interest expenditures refer to actual loan interest, bond interest, and so on. The formula is as follows: Multiples of interest earned = pre-tax interest / interest expense = (total interest expense) expense interest formula "gross profit" (including post-tax profit and income tax), all interest paid" and all interest to creditors, including interest on financial expenses, includes capitalized interest included in the cost of fixed assets. In general, the higher the multiple of interest that a company earns, the stronger its long-term solvency. A multiple of the acquired interest refers to the ratio of pre-interest and tax benefits and interest expenses to the company over a period of time, reflecting the degree to which the profitability of the company guarantees debt repayment. Among them, the total pre-tax profit is the sum of the total interest expenditure, and interest expenditure refers to the actual loan interest and the bond interest. The formula is as follows: Multiple of current interest = pre-tax profit / interest expense = (total interest + interest expense) "gross profit" in the formula for interest expense. Includes post-tax profits and income tax. "Interest expense" is the total interest of the creditor, including interest on financial costs and capitalized interest on fixed asset costs. Generally speaking, the higher the multiple of interest, the stronger the long-term solvency of the company. In general, the international community considers 3 to be more appropriate, and should be greater than one, at least in the long run.