coverage analysis Flashcards

1
Q

Times interest earned

coverage equation

A

EBIT / interest expense

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2
Q

EBITDA

coverage equation

A

EBITDA / interest expense

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3
Q

Cash from operations to total debt

coverage equation

A

cash from operations / (S.T. Debt + L.T. Debt)

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4
Q

Free oper. Cash Flow to tot. debt

coverage equation

A

(cash from operations-CAPX) / (S.T. Debt + L.T. Debt)

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