Answer: be able to honor its debt payment
Explanation:
The times interest earned (TIE) ratio is typically used to know the ability of a particular company to pay its debt based on the current income that the company has. It is gotten by dividing the earnings before interest and taxes by the total interest that is payable on the debt.
Since Company A has a TIE ratio of 3 and Company B has a TIE ratio of 1.2, then Company A is more likely to pay its debt than Company B.
