EBITDA minus CAPEX to interest coverage ratio is a measure of a company’s ability to pay off its interest expenses using its earnings before interest, taxes, depreciation, and amortization (EBITDA) minus its capital expenditures (CAPEX). It shows how many times the company can cover its interest payments with its EBITDA after accounting for its investments in fixed assets. The formula for EBITDA minus CAPEX to interest coverage ratio is:
EBITDA minus CAPEX to interest coverage ratio = (EBITDA - CAPEX) / Interest expense
Where:
- EBITDA is R0001,
ebitda
- CAPEX is CF047,
cf_cap_expenditures
- Interest expense is IS014,
is_int_expense