“Another useful coverage ratio is the earnings before interest, taxes, depreciation, and amortization coverage ratio, divided by annual interest expense.” So, this is supposedly useful: EBITDA coverage ratio, divided by Annual interest expense It’s just supposed to be EBITDA divided by annual interest expense, correct? What is it called?
There is one ratio I know of which is EBIT / Interest Expense -> Interest Coverage… Now what is EBITDA/Interest Expense?
I don’t know what is is called but it is used as coverage ratio. Part of Fixed Income
There are a few ratios with no name in the fixed income section that I believe were in the section talking about how rating agencies look at cash flow. It had the free cash flow formula that did not subtract out interest expense and then some ratios following it. I’ll look it up after breakfast
Its called EBITDA Interest Coverage.
Danke danke!