# How to Calculate Times Interest Earned in Sage Intacct

## What is Times Interest Earned?

Times Interest Earned (TIE) is a ratio that measures your company's ability to generate earnings from its assets. TIE is calculated by dividing your net income by your average interest-bearing assets.

TIE is a useful metric for determining whether or not your company is earning a return on its assets. If your company's TIE is less than 1, it means that your company is not earning a return on its assets. If your company's TIE is greater than 1, it means that your company is earning a return on its assets.

This is a very important metric for companies that are heavily invested in assets, such as real estate, machinery, or equipment.

## How do you calculate Times Interest Earned in Sage Intacct?

It can be difficult to calculate Times Interest Earned directly inside of Sage Intacct; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your Sage Intacct data. You simply connect Causal to your Sage Intacct account, and then you can build formulae in Causal to calculate your Times Interest Earned.

## What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Times Interest Earned. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Times Interest Earned.

#### data

Thanks! We'll be in touch soon.
Oops! Something went wrong while submitting the form.