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Unformatted text preview: lating to debt Numerator shows all cash flows available to meet fixed financial charges EBITDA + Lease pmts EBITDACov. = Interest + Lease pmts + principal pmts Denominator shows all fixed financial charges
3 Too much debt, but projected to improve
EBITDA Cov. = EBITDA + Lease PMTs ( in Cash ) Interest Expense + Lease PMTs ( in Cash ) + Principal Repayments 510.6 + 117.0 + 40 88 + 40 + 0
Assumes there were no principal Repayments = = 5.2 ×
n Note: 2008 and 2007 figures have been corrected 2009 EBITDA coverage 5.2x 2008 2007 Ind. 8.0x
4 -2.47x 2.6x Comments on EBITDA • • • In the previous slide, it is assumed that There are no capital repayments • Ie no principal is repaid. But how can this be? Th...
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This note was uploaded on 12/23/2009 for the course BCOM FINC 202 taught by Professor Warwickanderson during the Spring '09 term at Canterbury.
- Spring '09