FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Cash Coverage Formula

Fx Copy

LaTeX Copy

Cash Coverage is a financial metric used to assess a company's ability to cover its interest payments with its available cash flow. Check FAQs

Cash cov = \frac{EBIT}{Int}

Cash_cov - Cash Coverage?EBIT - Earnings before Interest and Taxes?Int - Interest Expense?

Cash Coverage Example

With values

With units

Only example

Here is how the Cash Coverage equation looks like with Values.

Here is how the Cash Coverage equation looks like with Units.

Here is how the Cash Coverage equation looks like.

1050 = \frac{105000}{100}

1050 = \frac{105000}{100}

1050 = \frac{105000}{100}

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Financial Accounting » Category

Cash Management » fx Cash Coverage

Cash Coverage Solution

Follow our step by step solution on how to calculate Cash Coverage?

FIRST Step Consider the formula

Cash cov = \frac{EBIT}{Int}

Next Step Substitute values of Variables

∴

Cash cov = \frac{105000}{100}

Next Step Prepare to Evaluate

∴

Cash cov = \frac{105000}{100}

LAST Step Evaluate

∴

Cash cov = 1050

Cash Coverage Formula Elements

Variables

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.

Symbol: Cash_cov

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Cash Coverage

Earnings before Interest and Taxes

Earnings before Interest and Taxes measures a company's profitability before income taxes and interests are factored in.

Symbol: EBIT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Earnings before Interest and Taxes

Interest Expense

Interest Expense is a non-operating expense shown on the income statement.

Symbol: Int

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Expense

Other formulas in Cash Management category

Go Cash Budget

CB = TR - TP

Go Baumol's Model

C = \sqrt{\frac{2 \cdot b \cdot t}{R}}

Go Miller Orr Model

Z = 3 \cdot {(\frac{3 \cdot b \cdot σ}{4 \cdot \frac{R}{360}})}^{\frac{1}{3}}

Go Cash Conversion Cycle

CCC = DIO + DSO - DPO

How to Evaluate Cash Coverage?

Cash Coverage evaluator uses Cash Coverage = Earnings before Interest and Taxes/Interest Expense to evaluate 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 evaluate Cash Coverage using this online evaluator? To use this online evaluator for Cash Coverage, enter Earnings before Interest and Taxes (EBIT) & Interest Expense (Int) and hit the calculate button.

FAQs on Cash Coverage

What is the formula to find Cash Coverage?

The formula of Cash Coverage is expressed as Cash Coverage = Earnings before Interest and Taxes/Interest Expense. Here is an example- 1050 = 105000/100.

How to calculate Cash Coverage?

With Earnings before Interest and Taxes (EBIT) & Interest Expense (Int) we can find Cash Coverage using the formula - Cash Coverage = Earnings before Interest and Taxes/Interest Expense.

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Cash Coverage Formula

Cash Coverage Example

Cash Coverage Solution

Cash Coverage Formula Elements

Other formulas in Cash Management category

How to Evaluate Cash Coverage?

FAQs on Cash Coverage

Variable Name