Definition: What is Cash Flow Coverage Ratio? Cash flow coverage ratio is the liquidity ratio which is used to measure the efficiency of the company to pay off its current obligation with its operating cash flow. From this ratio, we can analyze that, how easily a firm can pay its expenses from the company’s operation. […]
Definition: Accumulated Depreciation to Fixed Assets Ratio is the financial measurement. It is used to calculate the age, value and remaining life of the fixed assets of the company on the company’s balance sheet by comparing the total depreciation amount on these assets with total carrying cost. For the representation of the lost values on […]
Definition: What is (EBIT) Earning Before Interest and Taxes? EBIT or earnings before interest and taxes also called operating income. This ratio is used to measure the profit of the company which is calculated by subtracting the cost of goods sold (COGS) and operating expenses from the total revenue of the company. This ratio shows, […]
Definition: What is (EBITA) Earning Before Interest, Taxes, and Amortization? EBITA or earnings before interest, taxes, and amortization is the efficiency measurement. It calculates the operational profitability of the company by including the equipment costs and excluding the financing costs. For the measurement of earning and profitability of any business, investors, accountants and analyst use […]
Definition: What is (EBITDA) Earning Before Interest, Taxes, Depreciation, and Amortization? EBITDA is the financial calculation which is used to measure the profitability of the company before all of the deductions. In other words, EBITDA is the net income with added back taxes, amortization, and depreciation, and interest into the total. All the expenses like […]