Can someone explain what the cash coverage ratio is?

2007-05-05 10:22:38 · 1 answers · asked by Janice T 1 in Business & Finance ➔ Investing

1 answers

The Cash Coverage Ratio measures the multiple of the current level of debt that a firm could support given its current level of cash available.

Cash Coverage Ratio = (EBIT + Depriciation) / (Interest Expense)

2007-05-06 17:09:18 · answer #1 · answered by zman492 7 · 0⤊ 0⤋

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