EBITDA, Interest, and Coverage Ratios

These pages keep leverage capacity, EBITDA, fixed-charge, and interest-coverage measures together.

In this section

• EBITDA and Debt Leverage Ratios
  Valuation terms for EBITDA, debt-to-EBITDA, gross leverage, and net leverage ratios used in lending and transaction analysis.
  • Debt-to-EBITDA Ratio: A Common Measure of Corporate Leverage
    Learn what the debt-to-EBITDA ratio measures, why lenders use it, and what it can and cannot tell you about repayment capacity.
  • EBITDA
    Operating-earnings measure used in lending and valuation that excludes interest, taxes, depreciation, and amortization.
  • Gross Debt-to-EBITDA Ratio: Definition and Example
    Learn what the gross debt-to-EBITDA ratio measures, how lenders use it, and how it differs from net debt-based leverage metrics.
  • Net Debt-to-EBITDA Ratio: Definition and Example
    Learn what net debt-to-EBITDA ratio measures, how it differs from gross leverage, and why cash balances matter in credit analysis.
• Interest Coverage and Fixed-Charge Ratios
  Coverage-ratio terms for EBITDA coverage, interest cost, fixed charges, and interest-protection analysis.
  • Coverage Ratio: A Broader Measure of Financial Health
    Understanding the Coverage Ratio in Financial Analysis, Its Types, Importance, and Applications
  • EBITDA Coverage Ratio: Financial Health Indicator
    A comprehensive guide to the EBITDA Coverage Ratio, including historical context, importance, mathematical formulas, and real-world applications.
  • EBITDA-to-Interest Coverage Ratio: Definition, Calculation, and Importance
    A comprehensive guide to understanding the EBITDA-to-Interest Coverage Ratio, its calculation, significance, historical context, and application in assessing a company's financial durability.
  • Fixed Charge: Understanding Fixed Expenses in Economics and Finance
    A comprehensive examination of fixed charges, their historical context, types, key events, importance, applicability, and examples in various industries.
  • Interest Cost: Understanding the Time-Related Increase in PBO
    A comprehensive guide to interest cost, reflecting the time-related increase in the Projected Benefit Obligation (PBO) as the discount rate applies over time.