coverage analysis Flashcards
1
Q
Times interest earned
coverage equation
A
EBIT / interest expense
2
Q
EBITDA
coverage equation
A
EBITDA / interest expense
3
Q
Cash from operations to total debt
coverage equation
A
cash from operations / (S.T. Debt + L.T. Debt)
4
Q
Free oper. Cash Flow to tot. debt
coverage equation
A
(cash from operations-CAPX) / (S.T. Debt + L.T. Debt)