Earnings and cash flow ratios

Interest coverage = EBIT / Interest expense.
(ability to repay its debt obligations)

Fixed financial cost coverage = EBIT /(interest expense +1/3 lease payment)
(1/3 derived from a bond rating agency guideline that suggests 1/3 of lease payments represent the effective int component of borrowing)

Fixed charge coverage = EBIT / [Interest expense + Lease payments + Preferred dividends / (1-t)].

Total charge coverage ratio
(ability to make good on all of obligations), as preferred dividends are paid from after-tax dollars and need to be adjusted to a pretax basis)

Cash flow to interest expense = (net income + depreciation expense + increase in deferred taxes)/ interest expense
(use traditional cash flow instead of income in numerator, a different type of coverage ratio. Some use CFO or free cash flow)

Cash flow coverage of fixed financial cost coverage = {(traditional CF+ Interest Expense +1/3 lease payments)/(interest expense + 1/3 lease payments)}

Cash flow to LT debt= (net income + depreciation expense + increase in deferred taxes ) / Book value of LT debt
(denominator either with or without deferred taxes, If low->difficult to meet LT debt payments)

Cash flow to total debt = (net income + depreciation expense + increase in deferred taxes) / total debt)