Not fully cash - includes accrued sales, income and expenses. No distinction between maintenance and expansion capex. The amount of earnings available to repay debt principal after all expenses except depreciation, amortization, the net change in deferred tax liabilities, and other non-cash expenses and income. A standard ratio. The inverse is the approximate number of periods required to repay debt principal.
Debt includes capital leases.
Not fully cash - includes accrued sales and expenses. Assumes no cash outflows for net working capital needs, capital expenditures or dividends. The amount of debt principal in relation to earnings available to repay debt after all operating and non-operating expenses except depreciation and amortization, interest and income taxes. A standard ratio. The result is the approximate number of periods required to repay debt principal.