EBITDA Coverage

The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Income Statement, Single Step

Learn about the structure and contents of a single-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading

Income Statement, Multi-Step

Learn about the structure and contents of a multi-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading