Finance Solvers

Cash Coverage Ratio Calculator

Instructions: Use this Cash Coverage Ratio Calculator to compute the Cash Coverage Ratio $(CCR)$ with this calculator showing all the steps. You need to provide the Earnings Before Interest and Taxes $(EBIT)$ , depreciation and amortization, as well as the interest paid in the form below:

Cash Coverage Ratio Calculator

More about this cash coverage ratio calculator that will allow to get a step-by-step calculations. The cash coverage Ratio corresponds to the ratio between the EBIT plus the depreciation and amortization, and the interest . This ratio is a measure of long term solvency, and it indicates how many times earnings can pay for the interest owed, correcting for depreciation and amortization:

CCR = \displaystyle \frac{EBIT + \text{(Depreciation and Amortization)}}{\text{Interest}}

The Cash Coverage Ratio Calculator is a commonly used financial ratio to measure solvency of a firm. You can find other financial ratio calculators in our site, such as for example such as our current ratio , inventory turnover calculator and quick ratio , just to mention a few.

One profit ratio that is usually reported along with the Cash Coverage Ratio is the Times Interest Earned Ratio .