To estimate EBIT and compute the
interest coverage ratio, the CFO analyzes the company's cost structure.
14, while our actual
interest coverage ratio was 3.
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.
