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 .
