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A high Times Interest Earned (TIE) value indicates that the business entity is able to make the interest payments it owes on debt, eg if they took out a loan, the TIE is how much of the Interest from the loan they have earned back from whatever the loan was used to buy or invest in.

A high number value indicates that they are earning more than what they must pay back in Interest, which means that the money from the loan was properly used. A high number can also mean the following:

a) The business has very little "Leverage", this is undesirable as more leverage from debt is preferable to debt with no leverage.

b) The business pays down too much of its debt from its earnings, which means that they are not using their incoming funds to take advantage of investment opportunities that could result in a higher rate of return. This is symptomatic of conservative businesses that do not like to expand, or do not borrow money, float shares or seek outside assistance when financing

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