Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?
A)Times interest earned
B)Fixed-charge coverage ratio
C)Cash coverage ratio
D)Operating coverage ratio

Question

Quizplus · Accepted Answer

The cash coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes. It is calculated as (EBIT + Depreciation) / (Interest + Fixed Charges).

Which Ratio Measures the Number of Dollars of Operating Cash