EBITDA To Fixed Charges

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Dictionary Says

Definition of 'EBITDA To Fixed Charges'

A ratio used to measure a company's ability to incur additional debt or its ability to pay off existing debt. The ratio is usually measured as EBITDA over fixed charges over a trailing four quarter period. In this ratio, fixed charges generally refers to interest expenses, but there are variations on this ratio. Compliance by debt holders to maintain a specific level of EBITDA to fixed charges is often required in debt agreements.
Investopedia Says

Investopedia explains 'EBITDA To Fixed Charges'

EBITDA to Fixed Charges is not defined under GAAP principles. It is an extra measure used to better inform investors as to the future growth possibilities for the future. As it is not GAAP, uniformity among companies can not be guaranteed.
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'EBITDA To Fixed Charges'

  • 4 Leverage Ratios Used In Evaluating Energy Firms

    http://www.investopedia.com/articles/fundamental-analysis/12/4-Leverage-Ratios-Used-In-Evaluating_Energy_Firms.asp
    ... (For related reading, see A Clear Look At EBITDA.). Interest Coverage ... An oil and
    gas company should cover their interest and fixed charges by at least a factor ...

  • A Clear Look At EBITDA

    http://www.investopedia.com/articles/06/ebitda.asp
    ... For instance, bankers might argue that a company with EBITDA of $5 million and interest
    charges of $2.5 million had interest coverage of 2 - more than enough ...

  • EBITDA: Challenging The Calculation

    http://www.investopedia.com/articles/analyst/020602.asp
    ... EBITDA is used to analyze a company's operating profitability before non-operating ...
    and "other" non-core expenses) and non-cash charges (depreciation and ...

  • Series 65 Study Guide - Quantitative Methods of Evaluating ...

    http://www.investopedia.com/exam-guide/series-65/quantitative-methods/income-statement-key-calculations.asp
    ... The following article EBITDA: The Good, The Bad, And The Ugly sheds more light on
    this ... and uses during a period, calculated by adding non-cash charges (such as ...

  • 5 Common Trading Multiples Used In Oil And Gas Valuation

    http://www.investopedia.com/articles/basics/11/common-multiples-used-in-oil-and-gas-valuation.asp
    ... ratio (EBITDAX), which is similar except EBITDAX is EBITDA before exploration ... sum
    of cash flow from operating activities and all financial charges that include ...

  • Financial Statements: Long-Lived Assets | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements7.asp
    ... analysts prefer cash flow measures or EBITDA, which is ... to maintain and replace its
    fixed asset base ... in which case depreciation actually under-charges the expense ...

  • Investing In Health Insurance Companies

    http://www.investopedia.com/articles/stocks/09/investing-in-health-insurance.asp
    ... EBITDA (EBITDA/Revenue), 9.7%. ... costs and member growth over time, as well as the
    regulatory noise related to covered charges through the ... 30 Year Fixed, 3.80%, 3.80 ...

  • Financial Statements: Earnings | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements4.asp
    ... Some people use EBITDA as a proxy for cash flow because depreciation and amortization
    are non-cash charges, but EBITDA does not equal cash flow because it does ...

  • EVA: What Does It Really Mean? | Investopedia

    http://www.investopedia.com/university/EVA/EVA5.asp
    ... to correct/reverse this by adding back the non-cash charges of depreciation ... on gross
    invested capital (ROGIC), for example, corresponds to EBITDA because it ...

  • Penn Virginia Still A Solid Resource Income Play

    http://stocks.investopedia.com/stock-analysis/2011/Penn-Virginia-Still-A-Solid-Resource-Income-Play-PVR-BTU-ANR-WLT-ARLP-NRP-ACI0804.aspx
    ... relative to the bigger jump in EBITDA, it includes anticipated capex replacement
    charges that the company ... companies in both equities and fixed income. ...

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