LCM of two numbers

Cash Coverage Calculator

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✖Earnings before Interest and Taxes measures a company's profitability before income taxes and interests are factored in.ⓘ Earnings before Interest and Taxes [EBIT]			+10% -10%
✖Interest Expense is a non-operating expense shown on the income statement.ⓘ Interest Expense [Int]			+10% -10%

✖Cash Coverage is a financial metric used to assess a company's ability to cover its interest payments with its available cash flow.ⓘ Cash Coverage [Cash_cov]

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Cash Coverage Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash Coverage = Earnings before Interest and Taxes/Interest Expense
Cash_cov = EBIT/Int
This formula uses 3 Variables

Variables Used

Cash Coverage - Cash Coverage is a financial metric used to assess a company's ability to cover its interest payments with its available cash flow.
Earnings before Interest and Taxes - Earnings before Interest and Taxes measures a company's profitability before income taxes and interests are factored in.
Interest Expense - Interest Expense is a non-operating expense shown on the income statement.

STEP 1: Convert Input(s) to Base Unit

Earnings before Interest and Taxes: 105000 --> No Conversion Required
Interest Expense: 100 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

Cash_cov = EBIT/Int --> 105000/100

Evaluating ... ...

Cash_cov = 1050

STEP 3: Convert Result to Output's Unit

1050 --> No Conversion Required

FINAL ANSWER

1050 <-- Cash Coverage

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< Cash Management Calculators

Baumol's Model

LaTeX Go Cost of Providing a Service = sqrt((2*Cost of Conversion*Total Requirement of Cash)/Interest Rate)

Miller Orr Model

LaTeX Go Miller Orr Model = 3*((3*Cost of Conversion*Variance)/(4*Interest Rate/360))^(1/3)

Cash Coverage

LaTeX Go Cash Coverage = Earnings before Interest and Taxes/Interest Expense

Cash Budget

LaTeX Go Cash Budget = Total Receipts-Total Payments

Cash Coverage Formula

LaTeX Go

Cash Coverage = Earnings before Interest and Taxes/Interest Expense
Cash_cov = EBIT/Int

What is Cash Coverage?

The cash coverage ratio is an important metric for creditors and investors as it provides insights into a company's financial health and its ability to manage its debt obligations. It helps stakeholders assess the company's risk level and evaluate its ability to withstand financial challenges.
A cash coverage ratio below 1 indicates that the company's operating cash flow is not sufficient to cover its interest payments, which may raise concerns about its ability to service its debt.

How to Calculate Cash Coverage?

Cash Coverage calculator uses Cash Coverage = Earnings before Interest and Taxes/Interest Expense to calculate the Cash Coverage, The Cash Coverage formula is defined as a financial metric used to evaluate a company's ability to cover its short-term debt obligations with its available cash and cash equivalents. Cash Coverage is denoted by Cash_cov symbol.

How to calculate Cash Coverage using this online calculator? To use this online calculator for Cash Coverage, enter Earnings before Interest and Taxes (EBIT) & Interest Expense (Int) and hit the calculate button. Here is how the Cash Coverage calculation can be explained with given input values -> 1050 = 105000/100.

FAQ

What is Cash Coverage?

The Cash Coverage formula is defined as a financial metric used to evaluate a company's ability to cover its short-term debt obligations with its available cash and cash equivalents and is represented as Cash_cov = EBIT/Int or Cash Coverage = Earnings before Interest and Taxes/Interest Expense. Earnings before Interest and Taxes measures a company's profitability before income taxes and interests are factored in & Interest Expense is a non-operating expense shown on the income statement.

How to calculate Cash Coverage?

The Cash Coverage formula is defined as a financial metric used to evaluate a company's ability to cover its short-term debt obligations with its available cash and cash equivalents is calculated using Cash Coverage = Earnings before Interest and Taxes/Interest Expense. To calculate Cash Coverage, you need Earnings before Interest and Taxes (EBIT) & Interest Expense (Int). With our tool, you need to enter the respective value for Earnings before Interest and Taxes & Interest Expense and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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