cash coverage ratio as a measuring stick of financial health

My understanding is that the cash coverage ratio is one of the ratios that tests whether a company can comfortably honor its debts (on time).

I read that cash coverage ratio = (EBIT + Depreciation) / (annual interest expense), meaning that you look exclusively at the income statement, right?

Is this supposed to be thematically and numerically identical to (cash holdings shown on balance sheet) / (annual interest expense)?

What about (cash holdings shown on balance sheet + accounts receivables ) / (annual interest expense)?


It’s more akin to

CFO / Interest Expense