To estimate EBIT and compute the interest coverage ratio
, the CFO analyzes the company's cost structure.
14, while our actual interest coverage ratio
The traditional accrual-based interest coverage ratio
uses income before interest and taxes divided by interest expense.
In fact, the company's interest coverage ratio
declined to 2.
In addition, the sixth amendment amends the calculation of Carmike's consolidated EBITDA for purposes of the consolidated leverage ratio and the interest coverage ratio
Commencing with the fiscal quarter ending on September 30, 2007, in the event that the Consolidated Interest Coverage Ratio
for the 12 months preceding the end of any fiscal quarter is less than 2.
The class A/B, class C, class D interest coverage ratios
have declined since last review from 140.
Best notes that the group's financial leverage and interest coverage ratios
remain within expectations for the current rating category.
Best will consider the impact of this exercise on the organization's interest coverage ratios
The FFO interest coverage ratios
of PEC and PEF were 6 times (x) and 4.
The credit facility contains customary financial covenants and default provisions including that National Coal maintain minimum levels of EBITDA and liquidity and that it not exceed maximum leverage and interest coverage ratios
, and limitations on additional indebtedness.
The company's low debt levels and strong cash flow generating ability have resulted in interest coverage ratios
in the range of 12 times (x)-13x in recent years.