C. Interest coverage ratio is calculated as operating cash flow divided by interest payments. 解析:选B。偿债比率 = 经营现金流量/为偿还长期债务而支付的现金,衡量用经营现金流量偿还债务的能力。A项,再投资比率 = CFO/为长期资产支付的现金,其中应该是CFO而不是CFI。C项,利息覆盖率 = (CFO +已支付利息...
Definition The interest coverage ratio (ICR) is a measure of a company's ability to meet its interest payments. Interest coverage ratio is equal to earnings before interest and taxes (EBIT) for a time period, often...
The times interest earned ratio is an indicator of a corporation’s ability to meet the interest payments on its debt. The times interest earned ratio is calculated as follows: the corporation’s income before interest expense and income tax expense divided by its interest expense. The larger th...
6) The quick ratio is calculated as A) current assets divided by current liabilities. B) current assets minus inventory, divided by current liabilities. C) net working capital divided by current liabilities. D) cash on hand divided by current liabilities. E) current liabilities divided ...
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Given the excess of EBITDA over EBIT and capex growth, which corresponds to EBITDA growth, the change in EBITDA of the calculated interest coverage ratio is the highest, while the change (EBITDA – CapEx) is the smallest of the three types, with the change in EBIT in the middle. The Time...
The times interest earned (TIE) ratio, sometimes called theinterest coverage ratioorfixed-charge coverage, is anotherdebt ratiothat measures the long-termsolvencyof a business. It measures the proportionate amount of income that can be used to meet interest and debt service expenses (e.g., bonds...
The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt.
Theinterest coverage ratiomeasures the company’s ability to meet the interest expense on its debt, which is equivalent to itsearnings before interest and taxes (EBIT). The higher the ratio, the better the company’s ability to cover its interest expense. ...
In financial analysis andvaluation, EBIT serves multiple purposes. It's a key component in calculating important ratios like the interest coverage ratio. EBIT is also used in valuation multiples such as EV/EBIT. For mergers and acquisitions, EBIT helps in comparing potential targets on an operation...