The financial ratio measured as EBIT plus depreciation, divided by interest expense, is the:

A) Cash coverage ratio.
B) Debt-equity ratio.
C) Times interest earned ratio.
D) Gross margin.
E) Total debt ratio.

EBIT

Stands for Earnings Before Interest and Taxes, and is an indicator of a company's profitability excluding interest and tax expenses.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically expressed as an annual rate.