<\/p>\n
EBIT figures are not typically a GAAP reported metric, so you will likely not find it on the company\u2019s actual financial statements. Keep in mind that not all companies have debt, and as a result, not all companies will have an interest expense. For example, this would be the case if a company is financed entirely through equity, as most early ventures or growth stage companies are. The ratio indicates how many times a company could pay the interest with its before tax income, so obviously the larger ratios are considered more favorable than smaller ratios. A negative TIE ratio suggests that a company is operating at a loss before considering interest expenses, which raises serious concerns about its financial viability. If you find yourself in this uncomfortable position, reach out to a financial consulting provider to explore how your company got here and how it can get out.<\/p>\n<\/p>\n