EBITDA / Interest - Interest Coverage, Debt Ratios and Covenants. Example Excel Template and Lesson.
To follow-on from my last video on Debt to EBITDA, here is a quick look at EBITDA to Interest (also known as Interest Coverage) and how to model out actual debt ratios relative to a debt covenant set by the bank. We also use LTM (Last Twelve Months) EBITDA in this ratio.
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