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# Cash Coverage Ratio Calculator

Here is the online financial calculator to calculate the cash coverage ratio. This ratio is the measure of a company's capacity of its financial obligations. It is always desirable to have a high cash coverage ratio for any company, as it helps the company to fulfil its financial obligations to its lenders. In the below cash coverage ratio calculator, enter the earnings before interest and taxes and expenses related to non-cash and interest expenses and click calculate.

Here is the online financial calculator to calculate the cash coverage ratio. This ratio is the measure of a company's capacity of its financial obligations. It is always desirable to have a high cash coverage ratio for any company, as it helps the company to fulfil its financial obligations to its lenders. In the below cash coverage ratio calculator, enter the earnings before interest and taxes and expenses related to non-cash and interest expenses and click calculate.

#### Formula:

Cash Coverage Ratio = (E + D) / I Where, E = Earnings Before Interest and Taxes (EBIT) D = Non Cash Expenses(Depreciation) I = Interest Expense

### Example:

A company having an interest expense of Rs. 89, non cash expenses of Rs. 153 and earnings before interest and taxes of Rs. 289.

#### Solution:

Cash Coverage Ratio = (289 + 153) / 89
= 4.96.