EBITDA Coverage

The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

Get More Help!

Click one of these links to get more help from another Cramlet in this same chapter:

• Study Sheet of Debt Management Ratios
• TIE Ratio
• Equity Multiplier
• EBITDA Coverage
• Debt to Equity Ratio
• Debt Ratio