6.1.2 Lecture_11_Appendix_EBITDA_Coverage_Ratio

82 176 40 520 0 065 63 40 not known 0 260 7 final

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Unformatted text preview: ing EBITDA change in Notes Payable change EBITDA Coverage Ratio 2009 Numerator EBIT Depreciation Lease PMTS Denominator Interest PMTS Lease PMTS Change in Notes Payable Sinking Fund Payments EBITDA Cov. = 511 117 40 -691 117 40 209 19 40 2008 2007 88 40 120 0 1.82 176 40 -520 0 0.65 63 40 Not known 0 2.60 7 Final slide on EBITDA Coverage • See textbook, pp111­112. Note the mention of sinking funds, • which turns up at the bottom of D’Leon’s Income Statement. • A sinking fund is a required annual payment that retires a portion of an outstanding bond issue. The basic id...
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