easy · Debt Capital Markets
What is the primary reason an analyst might compute a 'Capital Expenditures-adjusted' coverage ratio?
- To increase the company's EBITDA for marketing purposes to new investors.
- To determine if the company can cover its interest after funding the investments needed to maintain its business.
- Because CapEx is tax-deductible, it improves the interest coverage ratio.
- To align the company's financials with the accounting of its competitors who do not have any assets.
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