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Which interest coverage ratio, EBITDA to interest or EBITA to interest, will lead to a higher number? And when is EBITDA interest coverage ratio more
Which interest coverage ratio, EBITDA to interest or EBITA to interest, will lead to a higher number? And when is EBITDA interest coverage ratio more appropriate than the EBITA ratio? a. The EBITDA ratio will be higher; it can be used long-term to measure ability to repay debts. The EBITA ratio will be higher; it can be used to meet interest obligations if near-term bankruptcy is a Ob. possibility and can measure survivability over the short term. The EBITDA ratio will be higher; it can be used to meet interest obligations if near-term bankruptcy is a possibility and can measure survivability over the short term. Od. The EBITA ratio will be higher; it can be used long-term to measure ability to repay debts
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