,"Please spell out the acronym as it may not be obvious. Just need once in the beginning of the post."
Hi E_K_S ... I thought I had gone some way to indicate what I was using in my calculation, namely ...
"Based on a 10 year AAA Corporate Bond Rate ("LTCBR") of about 3% ... ", but it wasn't entirely "letter for word", i.e. LTCBR = Long Term Corporate Bond Rate.
Apart from anything else, I tend to put a lot of emphasis on a company's Income Statement. Debt Expense, or Interest Expense, is Debt Expense, irrespective from whence it originates. And when it reduces Revenue then the question is, IMO, by how much.
IMO, EBITDA is an important stage in a company's Income Statement. As I mentioned in my post, an industrial type company cannot avoid the expenses of CoS and SG&A. Sometimes there's R&D involved, which is another expense prior to EBITDA.
So, the way I see it, any expense that follows EBITDA can be calculated as a ratio of EBITDA in order to get a good idea of how much of the Revenue left over at the EBITDA level is being eroded by that expense. |
