 अपका इंट्रस्ट्ट इक्पेश्ट तो तीःए आपको एक मैएर लेतिया या इंटिकेटर की वलिव आती है और उस अचर उप पस्टिप नमबर है, ख़ोल नमबर है गरिटर दें वान है तो इसका मैंबिल्डिया है, छए आपको इतने गुनन आपके पैसे है, तेक्स जि how much interest you have to pay TIE or times interest earn earning is also termed as the interest coverage ratio so this is another term which is used for this now as I mentioned earlier when your EBIT i.e. earnings before interest and taxes value is greater than interest expenses so your TIA number will be a number greater than 0 1, 2, 3 or any number you have so this means that you can bear the interest expenses and for example and if this number is less it means you don't have money to pay interest if we look at the earnings before interest and taxes to further explain this I am using an example suppose we are having a company XYZ which has 10 million dollars he has bought 4% debt outstanding 4% debt for 10 million and 10 million has common stock so the company is thinking that we should take some more loan but to take that loan we will have to bear more expenses in the form of interest so he wants to calculate his EBIT he wants to calculate his interest expenses so that he can figure out what is the capacity to give interest to him now the interest that is the debt of 10 million the interest on that that is 4% now to further expand he wants the loan and the debt so he found out cost of capital for issuing more debt is an annual interest rate of 6% so he wants money according to the market he can get it at 6% the shareholders they expect that we will get dividend from the company that is 8% plus some growth in the value of the stock so if we are assuming that all these things are happening with XYZ company now additional debt is going to be issued of 10 million so he is already giving 4% on 10 million he will have to give 6% on 10 million so what have we done we have multiplied 4% to 10 million 6% to 10 million the extra debt generated we have multiplied and you have accumulated the total value that is 1 million dollars annual so now with this information you have to pay and your EBIT that is assumed to be 3 million dollars so now we have seen the value of TI ratio so what have we done we will have the EBIT in the numerator and interest expense in the denominator so by putting these numbers which we have calculated EBIT is 3 interest expense is 1 million EBIT is 3 million so you calculate this ratio this means XYZ company has annual interest expense to pay the amount of money that they need more than 3 times they already have 3 times of money so this TI ratio tells us how many times you have extra money or you don't have so in both cases you will be able to calculate the value by calculating the TI ratio