Urgent question CFADS & Cash conversion ratio

Hi all,

Which exact formulas do you use for these? having trouble finding the exact one, as many different sources on the web use different versions.

  • Interest coverage ratio : Ebit / net cash interest expense (excluding pik)
  • fcf conversion ratio: EBITDA - Maintenance Capex - Taxes / EBITDA (do you include change in Wc?)
  • CFAD: EBITDA - Capex (Maint and growth) - Taxes - Change WC / Net cash interest expense (excluding pik) + mandatory repayments (Exlcuding optional/ cash sweep?)

Huge thank you!!

 

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