JPMorgan Deck
What core credit metrics should you know cold, and can you compute them? Debt $600M, cash $100M, EBITDA $200M, interest expense $36M.
Model answer
The big three: leverage = total debt / EBITDA; net leverage = (total debt minus cash) / EBITDA; interest coverage = EBITDA / interest expense. With the numbers given: gross leverage = 600 / 200 =…
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