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EBITDA/Cash Interest

Credit Statistics

Rezaah Ahmad avatar
Written by Rezaah Ahmad
Updated over 5 years ago

EBITDA/Cash Interest is an interest coverage multiple used to assess a company’s level of cash generation (EBITDA being used as a proxy for cashflow) versus it’s cash interest obligations. The higher the multiple the greater the comfort for investors on the company being able to service the interest payments on it’s borrowings

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