EBIT includes accrued sales, income, expenses. Book value of liabilities and equity may be less than their market value. Book value of equity includes reserves, adjustments and accrued income. The amount of earnings available to make interest payments after all operating and non-operating income and expenses except interest and income taxes. A standard ratio.
Gross interest is interest incurred before subtracting interest income and capitalized interest.
Not fully cash - includes accrued sales, income and expenses. The amount of earnings available to make interest payments after all operating and non-operating expenses except depreciation and amortization, interest and income taxes. A proxy for cash flow from operations. Use when risk is high, EBIT margins are low, or interest or tax expenses are high. Do not include debt-related amortization expense in the numerator.