finished financial ratios
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@ -25,6 +25,13 @@
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- used in case the inventory has to be discounted (ie the inventory just got recalled)
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** Leverage Ratios
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- Debt to total assets = debt / assets
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- Interest coverage = EBITDA / interest
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*** EBITDA
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- *definition:* Earnings Before Interest Taxes, Depreciation and Amoritization
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- *formula:*
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- \( \text{EBITDA} = \text{Net Income} + \text{Interest} + \text{Taxes} + \text{Depreciation} + \text{Amoritization}\)
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- \( \text{EBITDA} = \text{Operating Income} + \text{Depreciation} + \text{Amoritization}\)
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*** Debt to total assets = debt / assets
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*** Interest coverage = EBITDA / interest
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- Earnings Before Interest Taxes Depreciation and Amoritization
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