Interest cover is a company’s EBIT divided by its Net Interest Expense. For example take a company has EBIT of RM100 million per year. Let’s say its Interest Income is RM3 million while Interest Expense is RM13 million. That means its Net Interest Expense is RM10 million. Therefore Interest Cover is 10 times. This is [...]
Net Cash = Cash – Borrowings Cash includes bank balances, deposits, cash and Money Market Instruments (which may be reported as “Short Term Investments” by some companies – eg Genting) but excludes Cash held under Housing Development Accounts in the case of companies which are involved in property development. Borrowings comprise of interest bearing debt [...]
