When analyzing the ratio of interest earned over time, the higher ratio is better. Since Jones Inc.'s most recent ratio is 2.7356, this means that they could cover interest expenses about 2.7 times or that Jones Inc.'s income is about 2.7 times more than interest expenses. Higher ratios are better because they indicate a company's ability to service its debt obligations; high ratios are less risky. Over time, Jones Inc. has maintained a slightly variable ratio around 1.75. This ratio has increased for Jones Inc. over the past year as it has paid off significant debt. Before this increase, their ratio was slightly lower than that of their competitors. An investor who cares exclusively about this ratio will prefer a company with the highest ratio. Now that Jones Inc. has outpaced its competitor, it is more attractive to investors. Depending on future debt financing, they should continue at the same ratio and even increase