Leverage Ratios Flashcards
0
Q
Cash coverage ratio
A
EBITDA
/ interest
1
Q
Interest coverage AKA Times interest earned
A
EBIT
/ interest
2
Q
Fixed charge coverage
A
EBITDA
/ (interest + lease payments + sinking fund payments)
3
Q
Debt service
A
Debt
/ EBITDA
4
Q
Debt ratio
A
Total liabilities
/ total assets
5
Q
Debt to equity ratio
A
Debt
/ Equity