Question: How does the Cash Coverage ratio differ from the Times Interest Earned ratio? The Cash Coverage ratio is used for short - term analysis, while

How does the Cash Coverage ratio differ from the Times Interest Earned ratio?
The Cash Coverage ratio is used for short-term analysis, while the TIE ratio is used for long-term
analysis.
The Cash Coverage ratio includes depreciation in its calculation, providing a more cash-flow-
oriented measure.
The Cash Coverage ratio is always lower than the TIE ratio.
The Cash Coverage ratio only considers long-term debt, while the TIE ratio includes all interest
expenses.
How does the Cash Coverage ratio differ from the Times Interest

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