Earnings Before Interest and Taxes (EBIT)/Interest

Earnings before annual interest expense and taxes divided by annual interest expense.

4.3 -0.0 1.8 2.4

This ratio is a measure of your Company's ability to meet interest payments. A high ratio may indicate that a borrower would have little difficulty in meeting the interest obligations of a loan. This ratio also serves as an indicator of your Company's capacity to take on additional debt.

Net Profit + Depreciation, Depletion, Amortization/Current Maturities Long-Term Debt

Net profit plus depreciation, depletion, and amortization expenses divided by the current portion of long-term debt.

3.5 0.6 2.1 3.5

This ratio expresses the coverage of current maturities by cash flow from operations. Since cash flow is the primary source of debt retirement, this ratio measures the ability of your Company to service principal repayment and is an indicator of additional debt capacity. Although it is misleading to think that all cash flow is available for debt service, the ratio is a valid measure of the ability to service long-term debt.

1996 - 2000 Midcap & Company - ALL RIGHTS RESERVED

This Web Site was created by
MicroMedia Enterprises